Asian News

[Ichiro]

25may-European Construction Stocks Drop, Led by Bouygues; OMX Gains

By Adria Cimino

May 25 (Bloomberg) -- European construction stocks slid, led by Bouygues SA and CRH Plc on concern that accelerating growth in Europe will keep interest rates rising.

OMX AB had its biggest rally in 4 1/2 years after Nasdaq Stock Market Inc. agreed to buy Europe's fifth-largest equity market. Carrefour SA jumped on speculation that Colony Capital and French billionaire Bernard Arnault may increase their stake.

Regional indexes were little changed.

``We have to be cautious in the short term,'' said Christian Dargnat, chief investment officer at BNP Paribas Asset Management in Paris, which oversees $462 billion in assets. ``Interest rates are on the rise in Europe. That can weigh on stocks.''

The Dow Jones Stoxx 600 Index slipped from a 6 1/2-year high this week as investors speculate rates will rise in Europe and cuts in the U.S. look less likely. New home sales in the U.S. climbed the most in April since 1993 and durable-goods orders gained for a third month, reports showed yesterday.

The Stoxx 600 dropped 0.1 percent to 392.99 as of 3:02 p.m. in London. The Stoxx 50 was little changed and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, fell 0.1 percent.

National benchmarks declined in 12 of the 18 western European markets. The U.K.'s FTSE 100 lost less than 0.1 percent. France's CAC 40 added less than 0.1 percent and Germany's DAX rose 0.3 percent.

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

 

[clester]

"May 25 (Bloomberg) -- Japan's consumer prices fell at a slower pace in April, signaling gains may soon resume, making it easier for the central bank to raise interest rates."

This may be a bump in the road for all markets. Remember the "carry trade " talk. When is the next BOJ decision? anyone?

 

[Ichiro]

The next GOJ meeting is on 14 June 07 (Thursday). I would not be surprised if the yen appreciates to 117 due to the carry trade in the near future should the GOJ raise the interest rate.

 

[clester]

I heard an analyst lately say he thought the next increase would be in september. Do you have a feeling about June? thanks

 

[Ichiro]

I really don't think that GOJ will increase the rate in June but most likely in September. Besides, I don't see inflation heating up in Japan at this time expect for the increase of the gas price. However, if the interest rate is increased in the future, I think that the effect of the carry trade will be short term because the interest rates are higher iin Europe and the USA. And that is one of the reasons why the yen is at 121 plus.

 

[Ichiro]

26may- AP-Dollar Trades Mixed
Friday May 25, 3:54 pm ET
Dollar Mixed Against Major Currencies After U.S. Home Sales Data, German Economic Report

NEW YORK (AP) -- The dollar traded mixed against other major currencies Friday after a disappointing report on U.S. home sales and strong consumer confidence data out of Germany.

The 13-nation euro rose to $1.3447 in late New York trading from $1.3433 late Thursday.

The British pound fell to $1.9844 from $1.9858, while the dollar rose to 121.74 yen from 121.39 yen.

Sales of existing homes fell more than expected in April while the median home price dropped for a ninth straight month, the National Association of Realtors reported Friday.

Crawling to the slowest pace since June 2003, sales of existing homes fell by 2.6 percent last month to a seasonally adjusted annual rate of 5.99 million units.

The median price of a home fell to $220,900, dropping 0.8 percent from a year ago.

http://biz.yahoo.com/ap/070525/dollar.html?.v=1

 

[Ichiro]

26may-Greenspan Is Wary of China's Casino-Like Market: William Pesek

By William Pesek

May 25 (Bloomberg) -- Alan Greenspan and Li Ka-Shing may understand more than most what comedian Rodney Dangerfield meant when he said ``I don't get no respect.''

Here you have Greenspan, the man often called the greatest central banker who ever lived, and Li, Asia's richest man, worrying aloud about asset bubbles in China. And yet, the benchmark CSI 300 Index closed only 0.5 percent lower yesterday.

That doesn't compare with the 9.2 percent plunge on Feb. 27. That one, oddly, became a buying opportunity for an index that has jumped 92 percent this year after more than doubling in 2006.

Rational decision makers would normally quake at warnings about the casino mentality in Shanghai. Greenspan, after all, is a very cautious fellow who doesn't utter a word before considering what damage it might do. So when the former Federal Reserve chairman said May 23 that stocks in China face a ``dramatic contraction,'' he's probably far more concerned than he lets on.

Li, meanwhile, spoke volumes on May 17 when he said: ``As a Chinese, I'm worried about the stock market in China.''

Those words should matter because of Li's investment acumen; folks in Hong Kong don't call the billionaire ``Superman'' for nothing. Yet parsing Li's warnings gets at a more important point: His considerable business interests would be directly affected if China hits a wall.

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_pesek&sid=aoHE5wlTGnSg

 

[Ichiro]

26msy-Blackstone + China = Bubble Marriage: William Pesek (Correct)

By William Pesek

(Corrects job title in third paragraph.)

May 23 (Bloomberg) -- It would be fascinating to see what Mao Zedong would make of China's $3 billion investment in Blackstone Group.

Here you have the world's most-watched communist nation investing in perhaps the most capitalist of Wall Street vehicles: a private-equity firm. China is doing so with foreign-exchange reserves, which it uses to ensure employment for its 1.3 billion people.

For Asia's No. 2 economy, ``the Blackstone investment represents a supreme business irony,'' Donald Straszheim, vice chairman of Newport Beach, California-based Roth Capital Partners, told clients in a report yesterday.

China's embrace of the private-equity movement, which the country's regulators have long viewed with suspicion, is about expediency. Officials in Beijing have $1.2 trillion of reserves they want to invest more profitably than in U.S. Treasuries. They lack the expertise to do it themselves and don't want to pay money managers millions in fees.

Enter New York-based Blackstone, an institution with the expertise that Chinese bureaucrats lack: running globally competitive companies. For Blackstone, the deal is a way of improving private equity's image in Beijing.

http://www.bloomberg.com/apps/news?pid=20601039&sid=aU7bs9CJazGI&refer=columnist_pesek

 

[Ichiro]

26may-Korea Aims to Build a Goldman Sachs of Its Own: William Pesek

By William Pesek

May 16 (Bloomberg) -- A shakeup is afoot in South Korea and it could raise the stature of Asia's No. 3 economy.

That's not the common perception these days. With China growing 11 percent, India booming and Japan holding its own, many investors are paying less attention to Korea than they should be.

Samsung Group Chairman Lee Kun-Hee encapsulated things when he said in March that ``we are sandwiched'' between high- tech Japan and low-cost China. So did Hynix Semiconductor Inc. Chief Executive Officer Kim Jong Kap when he said in April that Korea needs an innovation boom if it's going to hold on to decades' worth of hard-won achievements.

This is an election year, which only exacerbates the challenge. President Roh Moo Hyun and those jockeying to replace him after December's contests should be trying to raise the economy's game, yet they are distracted to the detriment of Korea's 49 million people.

Korea's regulators are engaged in an enterprise of sorts that may leave the economy better off in the years to come. It also might get the country closer to its goal of becoming a key financial center in the world's most vibrant region.

This year, lawmakers are expected to approve the so-called Capital Markets Consolidation Act. The legislation, which relaxes restrictions preventing brokerages, futures traders and asset managers from entering each other's businesses, is being called Korea's ``Big Bang.''

Big Bang

Spend some time chatting with Choi Sang-Mok, who directs the division of Korea's Finance and Economy Ministry that will implement the changes, and you will see how revolutionary all this could be for a conservative business culture. By breaking down the walls between banks, brokerages and insurers, Korea is fostering an environment to create financial giants to compete with global rivals.

http://www.bloomberg.com/apps/news?pid=20601039&sid=aPxB5w2QZn5s&refer=columnist_pesek

 

[Ichiro]

26may-Singapore's Real-Estate Bubble Won't Be Pricked: Andy Mukherjee

By Andy Mukherjee

May 22 (Bloomberg) -- Asset-bubble vigilantes will find little to cheer about with Singapore's falling interbank lending rate.

They will be partly right: Cheaper capital is about the last thing the island's frenzied property market needs.

According to official statistics, housing loans by Singapore banks reached S$64.3 billion ($42.2 billion) in March. That's the highest on record.

With prices of private homes surging the most in seven years in the first quarter, and with rents having already climbed to levels not seen since 1998, it isn't surprising that more people are rushing to take out mortgages.

The trend may amplify if borrowing costs fall: The key three-month interest rate was at a 19-month low of 2.25 percent yesterday, a percentage-point drop since the end of February. It might be a matter of time before long-term rates follow suit.

Singapore yesterday reported that the economy expanded at a faster-than-expected annualized 7.6 percent pace in the first quarter. The momentum is coming from a revival in construction, which grew at its briskest rate in nine years.

If the U.S. economy rebounds in the second half of 2007, Singapore's flagging electronics exports may get a boost. That will be a bonus. In such a scenario, cheap money will appear both incongruous and dangerous.

Yet, bubble vigilantes will also be wrong.

http://www.bloomberg.com/apps/news?pid=20601039&sid=acv7Zo0hBK1M&refer=columnist_mukherjee

 

[Ichiro]

26may-Next Emerging-Market Crisis Is Five Years Away: Andy Mukherjee

By Andy Mukherjee

May 9 (Bloomberg) -- Harvard University economist Jeffrey Frankel has an interesting theory about the timing of the next emerging-market meltdown.

Capital flows into developing economies, he says, follow a 15-year pattern: ``seven fat years followed by seven lean years.'' The year between the two phases is when the flow of money suddenly stops.

Why 15 years?

``After 15 years have gone by, there is somebody new on the trading desk who did not personally live through the last crash,'' Frankel said at an April 27 globalization forum, organized by the International Monetary Fund in Washington. ``They sort of know about it, but it is easier for them to say the world has changed than if they lost money in it.''

There have been two such cycles in the recent past, according to Frankel. The first wave began around 1975, following a sharp increase in oil prices in 1973-74.

After seven years of frenzied recycling of petrodollars into emerging-market securities, Mexico blew up in 1982.

Then there were seven slow years, before investors came back to these markets with renewed vigor in the early 1990s.

That boom, which again went on for seven years, ended with the Asian crisis in 1997.

By this logic, the next blow to emerging-market economies will come in 2011 or 2012. So all those who envision that the current subprime mortgage crisis in the U.S. will lead to investors bailing out of risky, emerging-market securities may be disappointed.

Another Asian Crisis?

http://www.bloomberg.com/apps/news?pid=20601039&sid=a.SrrlvKK7cY&refer=columnist_mukherjee

 

[Ichiro]

28may- Reuters-Asian markets rebound
Sunday May 27, 9:56 pm ET

HONG KONG (Reuters) - Asian stock markets rebounded on Monday, with South Korea reaching a new peak as gains on Wall Street helped soothe worries about overheating in China's red-hot share markets.

Takeover news, such as Nasdaq's (NasdaqGS:NDAQ - News) plan to buy Nordic exchange company OMX (Stockholm:OMX.ST - News), had helped lift optimism on Wall Street Friday, driving the blue-chip Dow (DJI:^DJI - News) and tech-heavy Nasdaq Composite Index (Nasdaq:^IXIC - News) higher.

At 0021 GMT, Tokyo's Nikkei average (Osaka:^N225 - News) had climbed 0.5 percent as Sony (Tokyo:6758.T - News) gained 0.7 percent, auto maker Honda Motor (Tokyo:7267.T - News) also added 0.7 percent and photo film maker Fuji Film Holdings (Tokyo:4901.T - News) rose 1.4 percent.

"Stocks here are likely to see a rebound after the gain in U.S. markets and as the yen remains in the region of 121 yen to the dollar," said Yutaka Miura, a senior technical strategist at Shinko Securities.

A weak yen is good for exporters as it boosts the value of their overseas sales.

In South Korea, the benchmark KOSPI (KSE:^KS11 - News) rose nearly 0.5 percent to touch a new high of 1,652.05, recovering from Friday's 0.1 percent fall, thanks to strength in top lender Kookmin Bank (060000.KS) and Shinhan Financial Group (055550.KS).

"Global markets are still doing well, and that's encouraging investors to buy stocks every time there are falls," said Kim Hak-kyun, an analyst at Korea Investment and Securities.]]

http://biz.yahoo.com/rb/070527/markets_asia.html?.v=3

 

[Ichiro]

28may-Japanese Stocks Rebound on Weaker Yen, Higher Commodity Prices

By Patrick Rial

May 28 (Bloomberg) -- Japanese stocks rebounded from their biggest loss in a month, led by exporters after the yen weakened against the dollar and euro, boosting the value of their overseas sales. Trading companies gained after commodities prices rose at the end of last week.

Nintendo Co., Japan's second-largest video-game maker, rose for the first time in three days. Mitsubishi Corp., the nation's biggest trading company, jumped 2 percent.

Japan's currency weakened 2.3 percent this year as of last week's close. Investors borrow money in Japan, which has the lowest interest rates among developed economies, to buy securities with better returns overseas. This so-called carry trade works to depress the yen, while boosting the value of overseas currencies.

``There's was some speculation about a rate cut by the Federal Reserve, but now those expectations are being pushed back,'' said Yasuhiro Kunii, who helps manage about $38 billion in assets at Dai-Ichi Mutual Life Insurance Co. in Tokyo. ``Carry trade investors are taking that as a sign that they can continue what they're doing. I don't think the currency will be anything but supportive going forward.''

The Nikkei 225 Stock Average advanced 89.32, or 0.5 percent, to 17,570.53 as of 1:02 p.m. in Tokyo. The broader Topix index added 5.41, or 0.3 percent, to 1720.95.

Indexes pared gains in the afternoon after Kyodo News reported Japan's agriculture minister, Toshikatsu Matsuoka, made a suicide attempt.

On May 25 the Nikkei dropped the most since April 25, while the Topix had its biggest decline since April 19.

Weaker Yen Trend

Nintendo added 550 yen, or 1.3 percent, to 41,500. Honda Motor Co., the most dependent of Japan's big three automakers on overseas sales, gained 50 yen, or 1.2 percent, to 4,220. Sharp Corp., Japan's largest maker of liquid-crystal display televisions, jumped 50 yen, or 2.2 percent, to 2,305.

http://www.bloomberg.com/apps/news?pid=20601101&sid=aDUcsTImU95k&refer=japan

 

[Ichiro]

28may-Dollar May Gain as Stronger Data Are Likely to Keep Fed on Hold

By David McIntyre and Stanley White

May 28 (Bloomberg) -- The dollar may strengthen on speculation housing and job reports this week will ease pressure on the Federal Reserve to reduce interest rates this year.

The U.S. currency last week reached a six-week high against the euro and the strongest in three months versus the yen as traders cut bets the Fed will lower borrowing costs from 5.25 percent. U.S. reports this week may show consumer confidence increased, employment growth accelerated and home sales gained.

``We have the dollar strengthening into the end of the year,'' said Stephen Halmarick, co-head of economic and market analysis at Citigroup Australia in Sydney. Data this week ``will signal the Fed is on hold for quite a number of months.''

The dollar traded at $1.3457 per euro at 1:54 p.m. in Tokyo from $1.3442 late in New York May 25, when it reached $1.3412, the highest since April 11. It will rise to $1.32 by year-end, Halmarick said. The U.S. currency was at 121.69 yen from 121.79 last week, when it reached 121.88, the most since Feb. 13. The euro was quoted at 163.73 yen from 163.71 at the end of last week.

The dollar has risen 0.4 percent against the euro as the odds of a quarter-percentage point cut by the Fed over the next year declined to 26 percent from 37 percent May 18, according to a Credit Suisse index based on trading in interest-rate swaps.

http://www.bloomberg.com/apps/news?pid=20601085&sid=anCHxxCt7aGM&refer=europe

 

[Ichiro]

28may-Dollar May Gain as Stronger Data Are Likely to Keep Fed on Hold

By David McIntyre and Stanley White

May 28 (Bloomberg) -- The dollar may strengthen on speculation housing and job reports this week will ease pressure on the Federal Reserve to reduce interest rates this year.

The U.S. currency last week reached a six-week high against the euro and the strongest in three months versus the yen as traders cut bets the Fed will lower borrowing costs from 5.25 percent. U.S. reports this week may show consumer confidence increased, employment growth accelerated and home sales gained.

``We have the dollar strengthening into the end of the year,'' said Stephen Halmarick, co-head of economic and market analysis at Citigroup Australia in Sydney. Data this week ``will signal the Fed is on hold for quite a number of months.''

The dollar traded at $1.3457 per euro at 1:54 p.m. in Tokyo from $1.3442 late in New York May 25, when it reached $1.3412, the highest since April 11. It will rise to $1.32 by year-end, Halmarick said. The U.S. currency was at 121.69 yen from 121.79 last week, when it reached 121.88, the most since Feb. 13. The euro was quoted at 163.73 yen from 163.71 at the end of last week.
http://www.bloomberg.com/apps/news?pid=20601083&sid=anCHxxCt7aGM&refer=currency

 

[Ichiro]

28may-South Korean Won Drops After North's Short-Range Missile Test

By Jake Lee and Yumi Teso

May 28 (Bloomberg) -- South Korea's won fell after North Korea test-fired missiles late on May 25 as part of routine annual exercises, fueling concern tensions in the region may increase.

The short-range missiles were launched after the close of won trading last week. Japanese Prime Minister Shinzo Abe said his country's patience ``isn't limitless'' and retains the option of further sanctions against the communist nation. The won slid 1.5 percent on Oct. 9 after the North tested its first nuclear bomb.

``The North Korean missile story is weighing on the won,'' said Minoru Shioiri, a senior manager of currency trading and credit division at Mitsubishi UFJ Securities Co. in Tokyo.

The won fell 0.3 percent to 930.55 against the dollar at 9:36 a.m. local time, according to Seoul Money Brokerage Services Ltd. The won may weaken close to 934 this week, Shioiri said.

http://www.bloomberg.com/apps/news?pid=20601013&sid=a.Bf3hyyiEg8&refer=emergingmarkets

 

[Ichiro]

29may-GLOBAL MARKETS-Yen, global stocks up after strong Japan data
Tue May 29, 2007 4:56am ET25
Company Market News

By Lincoln Feast

LONDON, May 29 (Reuters) - Signs of strength in the Japanese economy boosted the yen and global stocks on Tuesday while government bonds fell after the data and after hawkish comments on interest rates from the European Central Bank.

Oil prices rebounded above $70 a barrel as worries continued about supplies from Nigeria and base metals were also firmer, with lead hitting a record high following a delay in exports from Australia.

The yen rallied from a three-month low versus the dollar after data showed Japan's jobless rate sank to a nine-year low and consumer spending topped expectations in April, fuelling expectations the Bank of Japan will raise borrowing costs in the coming months.

"BOJ rate hike expectations are intensifying," said Tomoko Fujii, senior economist and strategist at Bank of America. "The market is pricing in an earlier-than-expected rate rise."

The dollar was down 0.3 percent from late European dealings on Monday at 121.25 <JPY=>, while the euro was down 0.3 percent at 163.15 yen <EURJPY=R>.

Japan's unemployment rate fell to 3.8 percent in April from 4.0 percent in March, while household spending in the world's number-two economy rose by 1.1 percent from a year earlier, compared with just 0.2 percent expected in a Reuters poll.

http://yahoo.reuters.com/news/artic...5-29_08-56-10_L29512523&type=comktNews&rpc=44

 

[Ichiro]

29may-Europe shares rise as Vodafone stars, banks eyed
Tue May 29, 2007 4:46am ET15

By Sitaraman Shankar

LONDON, May 29 (Reuters) - European shares ticked up early on Tuesday, as Vodafone (VOD.L: Quote, Profile , Research) pleased investors with its dividend and banking stocks moved into focus after a Royal Bank of Scotland (RBS.L: Quote, Profile , Research)-led group unveiled details of a bid for ABN AMRO (AAH.AS: Quote, Profile , Research).

At 0809 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.07 percent at 1,600.49 points, with Germany's DAX <.GDAXI> outperforming its peers with a 0.2 percent rise and bluechips in France down 0.3 percent.

Vodafone (VOD.L: Quote, Profile , Research) climbed 3.8 percent to top European gainers after it posted annual dividends and earnings per share towards the top end of expectations, though it warned it expected market conditions to remain challenging in Europe.

Traders also cited vague market talk of a bid from AT&T (T.N: Quote, Profile , Research). Vodafone declined to comment.

A consortium led by RBS and including Spain's Santander (SAN.MC: Quote, Profile , Research) and Belgium's Fortis (FOR.BR: Quote, Profile , Research) unveiled a 71.1 billion euro bid for ABN that included its disputed U.S. bank and a higher cash component than indicated.

The bid trumps an agreed offer for ABN from Barclays (BARC.L: Quote, Profile , Research).

The news sent RBS down 2.1 percent to top losers in Britain, while ABN AMRO dipped 0.3 percent and Fortis slipped 0.9 percent. Santander

http://yahoo.reuters.com/news/artic...5-29_08-46-15_L29222707&type=comktNews&rpc=44

 

[Ichiro]

30may-European Stocks Retreat on China Concern, Led by LVMH, Bulgari

By Sarah Jones

May 30 (Bloomberg) -- European stocks dropped the most in two months after China increased taxes on securities trades, sparking concern that global shares face another sell-off.

LVMH Moet Hennessy Louis Vuitton SA, Standard Chartered Plc and BHP Billiton Ltd. led a decline by companies most dependent for revenue in the world's fastest growing major economy. Total SA and BP Plc fell after oil slumped yesterday.

Chinese stocks tumbled the most in three months after the government tripled the tax on securities transactions to slow a market that has almost doubled this year. A plunge in the nation's equity market in February triggered a global rout that wiped $3.3 trillion from the value of stocks.

``Anything that has a China label attached to it is going to come under pressure,'' said Chris Tinker, head of equity research at ICAP Plc in London. ``We have to keep in context the market's response to Chinese developments back in February. It did have something of a contagion affect.''

The Dow Jones Stoxx 600 Index dropped 0.8 percent to 391.18 as of 1:04 p.m. in London. All 18 industry groups slid. The Stoxx 50 declined 0.9 percent as did Euro Stoxx 50, a measure for the 13 nations sharing the euro.

Stamp duty on share trades was lifted to 0.3 percent ``to promote the healthy development of the securities market,'' China's finance ministry said. The central bank this month raised interest rates for the second time this year.

http://www.bloomberg.com/apps/news?pid=20601085&sid=as5reRj1zlmw&refer=europe

 

[Ichiro]

30may-China Stocks Drop as Stamp Duty Triples: World's Biggest Mover

By Zhang Shidong and Darren Boey

May 30 (Bloomberg) -- China's stocks tumbled the most in three months after the government tripled the tax on securities transactions to cool a rally that's drawing more than 300,000 new investors a day.

The CSI 300 Index dropped 281.83, or 6.8 percent, to close at 3886.46 in Shanghai, the biggest fluctuation among markets included in global benchmarks. The value of local stocks has more than doubled this year to $2.47 trillion and brokerage accounts topped 100 million for the first time this week.

``The Chinese government is concerned that there's too many people in the market, and they're gambling,'' Mark Mobius, who oversees some $30 billion as managing director of Templeton Asset Management Ltd., said in an interview in Hong Kong. ``It's good for people to not expect that markets go up continuously.''

More than half of the shares included in the CSI 300 fell by the 10 percent daily limit today, including Citic Securities Co., the nation's largest publicly traded brokerage, and China Shipping Development Co., the biggest oil tanker operator.

http://www.bloomberg.com/apps/news?pid=20601080&sid=aov7tk7g9L9A&refer=asia