Asian News

[Ichiro]

14jan-daily fx-- Japanese Yen Freefall

Thursday January 11, 6:43 am ET

By Jamie Saettele, Technical Currency Analyst strategist@dailyfx.com

• Euro Finds Little Relief
• Japanese Yen Loses 120
• British Pound Holding Trendline Support
• Swiss Franc Blows By 61.8%
• Canadian Dollar Ranging
• Australian Dollar False Break
• New Zealand Dollar Constructive

""USDJPY – The USDJPY has broken above the neckline from the 13 month inverse head and shoulders pattern. The door is now open for an assault on the 125.00 figure and ultimately a measured objective at 128.67 – which is where the advance from 108.96 would equal the advance from 101.67 to 121.38. Daily RSI is in overbought so managing risk is key here for longs. On the other hand, RSI just entering extreme territory could mark the beginning of a much stronger move. Support is former resistance at 119.67. ""

for info:
http://biz.yahoo.com/fxcm/070111/1168519415174.html?.v=1

 

[Ichiro]

14jan-bloomberg--Global Markets Face `Severe Correction,' Faber Says (Update4)

By Ian C. Sayson and Pimm Fox

Jan. 8 (Bloomberg) -- ""Marc Faber, who predicted the U.S. stock market crash in 1987, said global assets are poised for a ``severe correction'' and it's time to sell.

``In the next few months, we could get a severe correction in all asset markets,'' Faber said in an interview with Bloomberg Television in New York. ``In a selling panic you should buy, but in the buying mania that we have now the wisest course of action is to liquidate.''

Faber, founder and managing director of Hong Kong-based Marc Faber Ltd., advised investors to buy gold in 2001, which has since more than doubled. His company manages about $300 million in assets.

The bullish outlook of traders in everything from bonds, equities and commodities to real estate and art suggests valuations are peaking, Faber said. Last year, the Morgan Stanley Capital International World Index of developed stock markets jumped 18 percent, while a survey of Wall Street's biggest bond- trading firms predicted U.S. Treasuries will post the best gains in five years during 2007.

``I am not a great buyer of assets now,'' Faber said. ``We may be in a situation where consumer-price inflation comes back and will have a negative impact on the valuation of assets.''

Faber, publisher of the Gloom, Boom & Doom Report, does have some favorites. Singapore and Vietnam are his top picks in Asia because stocks in Singapore aren't ``terribly expensive compared with interest rates'' in the city-state, while Vietnam's equities have ``incredible potential in the long run.''

Vietnam, Singapore

Vietnam's Ho Chi Minh Stock Index more than doubled last year and was Asia's best-performing benchmark. Singapore's Straits Times Index climbed 27 percent, beating a 15 percent increase in the Morgan Stanley Capital International Asia-Pacific Index.

So far in 2007, Vietnam's index has surged 10 percent, again leading gains in the region, and Singapore's is up 0.6 percent. The MSCI has dropped 1 percent.

Faber recommends investors steer clear of shares in the world's biggest developing economies after the emerging markets in 2006 outperformed their developed counterparts for a fifth straight year.

``Emerging markets could get kicked in the next three months so I'd be careful of buying Russian shares,'' Faber said. ``I'd also be careful of buying China and India shares now.''

Russia's dollar-denominated RTS Index surged 75 percent last year, while the Hang Seng China Enterprise Index, which tracks Hong Kong-listed shares of Chinese companies, jumped 94 percent. India's Sensex Index, which more than quadrupled in the past five years, is valued at 25 times estimated earnings.

Thailand, Japan

On a more positive note, Japanese stocks may prove good bets this year, Faber said. The Nikkei 225 Stock Average climbed 6.9 percent in 2006 and the broader Topix index added 1.9 percent, the smallest gains among benchmarks for the world's 10 biggest markets. "

for info:

http://www.bloomberg.com/apps/news?pid=20601087&sid=afYGFBA.L8PQ&refer=home

 

[Ichiro]

15jan-bloomberg--Emerging Stock Markets Face the $1 Trillion Curse: David Wilson

By David Wilson

Jan. 11 (Bloomberg) -- ""Will $1 trillion become a curse for the four-year rally in emerging-market stocks, as it was for the Internet bubble of the 1990s?

The question arises because the value of China's stock market exceeded this threshold yesterday and Russia's did so last month, according to data compiled by Bloomberg. Before then, no emerging market had ever been so large.

Cisco Systems Inc., the world's largest maker of computer- networking equipment, looked like it might become the first $1 trillion company by market value in February 2000. At least it did to Paul Weinstein, then an analyst at Credit Suisse First Boston, who wrote about the possibility.

Within two months, Cisco's shares reached their peak and the bubble started to burst. The stock plunged 90 percent from its all-time high and the Nasdaq Composite Index fell 78 percent from its record by October 2002.

Emerging markets have surged almost as much as the Nasdaq did in its heyday. Morgan Stanley Capital International's Emerging Markets Index rose 312 percent in the last four years -- eight percentage points less than the U.S. index's 1995-1999 rally.

Chinese and Russian stocks are largely responsible for the gains. Eight of the 40 most heavily weighted companies in MSCI's index are based in China. The total is the largest among the 25 countries represented. Russia has four, including OAO Gazprom, whose 4.5 percent weight is the highest among its 851 members.

Local Similarities

The parallels between the two countries go further.

Both have energy producers among the 10 most-valuable companies worldwide. Gazprom, the world's biggest natural-gas provider, is fifth. PetroChina Co. is ninth, higher than every other oil company except Exxon Mobil Corp., No. 1 overall.

Both had initial public offerings last year that were among the 10 largest ever. Industrial & Commercial Bank of China Ltd. raised $22 billion, a record. Bank of China Ltd. made an $11.2 billion IPO. Russia's OAO Rosneft had a $10.6 billion sale. ""

for info:

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_wilson&sid=aVacwHI2pvAQ

 

[Ichiro]

15jan-ap-- AP--Yuan's Rise Squeezes Chinese Exporters

By Joe Mcdonald, AP Business Writer.

China's Exporters Suffering As Currency Rise Squeezes Revenues

BEIJING (AP) --"" Dependent on exports to the United States, the Hebei Lihua Hat Co. saw its profits wiped out as China's currency rose steadily against the dollar over the past year.

Hebei Lihua, which sold 90 percent of its 4 million hats to overseas markets last year, fought back by pushing its 1,800 workers to cut waste and find cheaper raw materials. It tried to boost revenues by introducing a new waterproof hat.

Yet even those efforts might be inadequate, said Wang Zhenhao, the business manager for Hebei Lihua, located in Baoding, a city southwest of Beijing.

"If the appreciation continues, we will probably lose money," Wang said.

Chinese companies that supply U.S. retailers with billions of dollars worth of toys, furniture and other goods every year face a painful squeeze as the yuan rises, setting off a race to cut costs or find new products that Americans will pay more for.

Beijing has let the yuan creep up by 6 percent against the dollar since July 2005, easing currency controls as part of long-term efforts to defuse strains caused by a multibillion-dollar influx of export revenues and investment. The yuan most recently was trading at about 7.81 to the dollar.

Washington is pressing Beijing to let the yuan, also known as the renminbi, or people's money, rise faster. It says the yuan is undervalued, giving Chinese exporters an unfair price advantage and widening the U.S. trade deficit with China.

The United States says its trade gap with China for the first 11 months of 2006 reached an all-time high of $213.5 billion, surpassing the full-year record of $202 billion set the previous year.""

info:

http://biz.yahoo.com/ap/070114/china_dollar_blues.html?.v=1

 

[Ichiro]

15jan-yahoo singapore--ASEAN's dream of economic union far from reality

""Southeast Asian nations have pledged to create one of the world's largest free-trade blocs by 2015, but for a region that runs from super-rich Brunei to impoverished Myanmar, analysts wonder how realistic that goal is.

At their annual summit Saturday, leaders of the 10 members of the Association of Southeast Asian Nations (ASEAN) affirmed their strong commitment to accelerate the establishment of a free-trade zone by 2015.

The move would liberalise the movement of goods, services, investment and capital across a region of almost 570 million people, around one-tenth of the world's population.

"ASEAN is committed to expanding its trade area to create one of the world's greatest trading blocs by 2015," Philippine President Gloria Arroyo proclaimed when she opened the summit.

But the grouping's members range from the modern, advanced island state of Singapore with a per capita GDP of some 28,600 dollars to poor communist Laos, where per capita GDP is around 2,000 dollars.

Singapore's elder statesman and one of ASEAN's founders, Lee Kuan Yew, said in an interview last year: "To have one currency, a borderless community, I don't see that, not yet."

Michael Clancy, an economist and CEO of the Philippine Business Leaders Forum, said ASEAN was moving very slowly towards economic integration.

"It has adopted the European model but unlike Europe, it does not see the same urgency at the rising economic might of China and globalisation.

"ASEAN may boast a market of more than 550 million people but it is a market fragmented with huge disparities between member states," he told AFP.

China currently dwarfs ASEAN in terms of attracting foreign direct investment -- 60 billion dollars in 2005 compared to 30 billion for ASEAN, of which more than 60 percent went to Singapore.

Southeast Asia also has much work to do on harmonising regulations."

for info:

http://sg.biz.yahoo.com/070114/1/45yg4.html

 

[Ichiro]

15jan-retuers--Japan govt should ask for BOJ rate hike delay -LDP

TOKYO, Jan 14 (Reuters) -"" If the Bank of Japan proposes a vote on whether to raise interest rates at its policy meeting this week, the government should call for a postponement of the vote, a senior ruling party lawmaker was quoted as saying on Sunday.

The comment by Hidenao Nakagawa, secretary general of the ruling Liberal Democratic Party, was the clearest opposition yet by senior Japanese policymakers to a possible BOJ rate hike.

Speculation is growing that the central bank could raise the overnight call rate to 0.5 percent from the current 0.25 percent as early as its two-day policy board meeting ending on Thursday.

"The government has the obligation to request a postponement of the vote," Nakagawa was quoted by the Kyodo news agency as saying in a speech in Aichi prefecture in central Japan.

Representatives from the Ministry of Finance and the Cabinet Office cannot vote on monetary policy decisions by the independent central bank, but they can voice opinions and have the right to request postponements of votes at policy meetings.

Nakagawa suggested that the BOJ law, which governs the BOJ and gives the central bank independence, may need to be revised if the BOJ were to turn down any government request for postponing a vote and decides to raise rates, Kyodo said.

"If (the BOJ) cannot share the view of the economy and policy goals with the government, that would be a serious flaw of the current legal system," Nakagawa said.""

for info:

http://yahoo.reuters.com/news/artic...-01-14_12-45-40_T282239&type=comktNews&rpc=44

 

[Ichiro]

16jan-yahoo singapore-German economy on a roll as reforms pay off

""Germany, once derided as the "sick man of Europe", has suddenly bounced back with its economy booming and budget overspending slashed after long and painful economic reforms.

Only a few years ago, Germany, with the eurozone's biggest economy, also had the lowest growth and one of the highest deficits.


But data published at the end of last week showed that Germany's economic fortunes improved dramatically last year when growth hit a six-year high point and the public deficit was hacked back by a third.

Growth of German gross domestic product (GDP) nearly tripled to 2.5 percent in 2006, from 0.9 percent in 2005, the federal statistics office Destatis calculated in preliminary figures on Thursday.

It was the third-biggest increase in annual GDP since re-unification in 1990.

And finance minister Peer Steinbrueck proclaimed on Friday that the country's public deficit -- which has exceeded EU limits every year since 2002 -- had been cut by more than a third, and now measured only 1.9 percent of GDP, down from 3.2 percent in 2005.

Analysts said that Germany was reaping the rewards of some very tough economic reforms, initiated by the previous Social Democrat-led government under Gerhard Schroeder and carried on by the current left-right coalition administration under Angela Merkel.

"After a wrenching five-year adjustment crisis, Germany is reaping the rewards of its strenuous efforts," diagnosed Bank of America economist Holger Schmieding.

"Pronounced wage restraint, some structural reforms, as well as cuts in taxes and government expenditure have led Germany to become a better place to invest in again," he said.

The upturn, traditionally driven by exports, had broadened and was now being powered by a pick-up in domestic demand on the back of booming investment and recovering private consumption.

Inroads were finally being made into the German jobless queues, with unemployment falling to 10.8 percent in 2006 from 11.7 percent in 2005. And the German trade surplus hit a record high in November, putting Germany in line to become the world's champion exporter for the fourth year in a row.

Temporary factors, such as the World Cup soccer championships, had distorted the country's economic performance to the upside in 2006.

And the rise in value-added or sales tax (VAT) from 16 percent to 19 percent from January 1 would put the brakes on some of the momentum in 2007, said the DIW economic think tank in Berlin on Friday.

But "there is no sign of an end to the current upturn," DIW insisted.""

for info:

http://sg.biz.yahoo.com/070114/1/45yga.html

 

[Ichiro]

15jan-ap- AP-Japan Stocks Higher; Dollar Down Vs. Yen

Japanese Stocks Higher; Dollar Falls Against Yen

TOKYO (AP) -- ""Japanese stocks rose Monday morning, led by gains in airline and financial issues. The dollar was lower against the yen.

The benchmark Nikkei 225 index added 154.85 points, or 0.91 percent, to 17,211.86 points on the Tokyo Stock Exchange at the end of morning session Monday.

ADVERTISEMENT
The Nikkei maintained its momentum from Friday -- when it rose 1.30 percent to finish trading at 17,057.01 points -- on the back of a strong performance by U.S. markets at the end of last week.

On Wall Street Friday, the Dow Jones industrials marked their 24th record close since the start of October as investors embraced robust U.S. economic data and shrugged off several profit warnings. The Dow rose 41.10, or 0.33 percent, to 12,556.08.

Airline and financial stocks were among the early gainers Monday in Tokyo. Japan Airlines rose 4.7 percent to 246 yen (US$2.04) on reports it will secure new funding for restructuring efforts. Nikko Cordial added 3.4 percent to 1,310 yen (US$10.89) following reports Canadian investment firm Mackenzie Financial takes a 5.74 percent stake in the company.""

for info:

http://biz.yahoo.com/ap/070114/japan_markets.html?.v=2

 

[Ichiro]

15jan-reuters-UPDATE 2-Japan Nov machinery orders top forecast, BOJ eyed

By Leika Kihara

TOKYO, Jan 15 (Reuters) - ""Machinery orders at Japanese firms rose more than expected in November from October, painting a positive picture of capital spending and reinforcing some market expectations that the Bank of Japan could raise rates this week.

Analysts said the data is unlikely to affect monetary policy directly as the BOJ is focused more on whether personal consumption and prices will pick up from their recent softness.

But the strong reading pushed up the yen and sent Japanese government bond futures lower as market players took it as another factor paving the way for a possible interest rate rise this week.

Core private-sector machinery orders, regarded as a leading indicator of corporate capital spending, rose 3.8 percent in November from October, for the second straight month of increase, data showed on Monday.

That beat economists' consensus forecast for a rise of 3.4 percent, underscoring the view that robust capital spending will underpin the economy even as personal consumption remains slack.

"The headline figure is stronger than market forecasts and is favourable for the BOJ to raise interest rates" this week, said Takeshi Minami, chief economist at Norinchukin Research Institute.""

for info:

http://yahoo.reuters.com/news/artic...7-01-15_02-41-23_T32379&type=comktNews&rpc=44

 

[Ichiro]

15jan-retuers--FOREX-Yen edges up as BOJ rate move seen more likely (note: If BOJ does not increase the interest rate, the chances are high that the Yen will depreciate to 122 yen to the USdollar).

TOKYO, Jan 15 (Reuters) - ""The yen edged up from a 13-month low against the dollar on Monday after data showed Japanese machinery orders beat forecasts, possibly paving the way for the Bank of Japan to raise interest rates this week.

Core machinery orders rose 3.8 percent in November from a month earlier, above market expectations for a 3.4 percent gain and showing that steady capital spending is underpinning economic growth.

Investors believe the BOJ is leaning towards raising overnight rates to 0.5 percent, which would be the highest since 1995, despite opposition from senior government officials who have warned the central bank to be cautious on policy.

Ministers worry that raising rates too quickly could undermine the economy's recovery from a decade of stagnation.

One senior ruling party official, Hidenao Nakagawa, said over the weekend that the government should consider asking the BOJ to postpone any proposed vote to raise rates at a two-day policy meeting that ends on Thursday, Kyodo news agency reported.

But even a rate rise would not erode the huge yield advantage of other major currencies, and the BOJ is seen taking a while longer before another round of monetary tightening.

"Even if the BOJ hikes, it won't be a strong catalyst for yen strength," said Masafumi Yamamoto, a currency strategist at Nikko Citigroup in Tokyo.

"The decision will be very interesting: whether the BOJ hikes or not, whether the decision is unanimous or not, and whether the government asks for a postponement. The risks to the yen will be to the downside," Yamamoto said. ""

for info:

http://yahoo.reuters.com/news/artic...-01-15_00-57-28_T290534&type=comktNews&rpc=44

 

[Ichiro]

15jan-bloomberg-Japan's Topix Index Climbs to 8-Month High on U.S. Retail Sales

By Patrick Rial and Makiko Suzuki

Jan. 15 (Bloomberg) -- ""Japanese stocks advanced, with the Topix index climbing to the highest in eight months, after U.S. retail sales had their biggest increase in five months and domestic machinery orders rose more than analysts estimated.

Honda Motor Co. paced gains by exporters on expectations sales will rise. Banks such as Mitsubishi UFJ Financial Group Inc. led gains by lenders as speculation increased the Bank of Japan will raise borrowing costs this week. Higher interest rates allow lenders to charge more for their loans.

``U.S. consumption is solid overall as seen in the retail sales figure and that means exporter shares will also perform well,'' said Junichi Misawa, who oversees $655 million in funds at STB Asset Management Co. in Tokyo. ``The gain in bank stocks shows market sentiment is leaning toward a rate increase this week.''

The Nikkei 225 Stock Average advanced 152.91 or 0.9 percent, to 17,209.92 in Tokyo and the broader Topix index climbed 19.31, or 1.2 percent, to 1704.58, the highest since May 11. Gauges tracking exporters and lenders accounted for almost half of the Topix's gain.

Honda, Japan's third-largest carmaker, jumped 80 yen, or 1.7 percent, to 4,690. Sony Corp., maker of the PlayStation 3 video-game console, surged 140 yen, or 2.5 percent, to 5,700. Nissan Motor Co., Japan's No. 2 automaker, rose 20 yen, or 1.4 percent, to 1,461. ""

for info:

http://www.bloomberg.com/apps/news?pid=20601101&sid=aU4vuODYhWV4&refer=japan

 

[Ichiro]

15jan-bloomberg--Yen Rises as Machinery Orders Raise Odds of BOJ Rate Increase

By Kosuke Goto and Stanley White

Jan. 15 (Bloomberg) -- ""The yen gained for a second day against the dollar after a report showed accelerating growth in machinery orders, boosting the Bank of Japan's case for raising interest rates.

Investors see a 76 percent chance the BOJ will increase borrowing costs this week, up from 66 percent on Jan. 12, according to Credit Suisse Group calculations. Rising rates may encourage Japanese investors to keep money at home and will make raising funds in yen to buy higher-yielding assets more expensive.

``Traders took a good look at the machinery orders data and are buying yen,'' said Osao Iizuka, head of foreign-exchange trading at Sumitomo Trust & Banking Co. in Tokyo. ``The numbers support speculation the BOJ will raise rates this week.''

The yen climbed to 120.25 per dollar at 8 a.m. in London compared with 120.32 late in New York on Jan. 12, when it reached 120.74, the weakest since December 2005. Japan's currency was also at 155.68 per euro compared with 155.50 on Jan. 12. The yen may rise to 120 per dollar today, Iizuka said.

Non-government machinery orders, excluding shipping and utilities, climbed 3.8 percent from October, the first back-to- back gains since 2005, the Cabinet Office said today in Tokyo. The median estimate of 28 economists surveyed by Bloomberg News was for a 3.5 percent increase.

Thirty-one of 48 economists surveyed by Bloomberg predict policy makers will raise the key overnight lending rate by a quarter-percentage point to 0.50 percent on Jan. 18. Credit Suisse calculates the chances of an increase based on trading in contracts for the exchange of interest payments. ""

for info:

http://www.bloomberg.com/apps/news?pid=20601101&sid=aBDp4R..1zK0&refer=japan

 

[Ichiro]

15jan-bloomberg--European Stocks May Gain as Oil Rebounds; BP, Shell Might Rise

By Sarah Thompson

Jan. 15 (Bloomberg) -- ""European stocks may climb, led by BP Plc and Royal Dutch Shell Plc, after oil advanced for a second day in New York.

Smiths Group Plc, the U.K. builder of refueling equipment for Boeing Co. planes, is expected to rise after General Electric Co. agreed to buy its aerospace unit for $4.8 billion. EMI Group Plc might gain on takeover speculation.

Futures on the Dow Jones Euro Stoxx 50, a benchmark for the 13 countries using the euro, added 24 to 4219.00 at 7:41 a.m. in London. The U.K.'s FTSE 100 Index is seen rising 9 to 6248, according to CMC Markets.

European stocks climbed to a six-year high last week on speculation shares in the region are still cheap relative to the outlook for economic and earnings growth. U.S. markets are closed today in observance of Martin Luther King Jr. Day.

There are expectations ``the U.S. economy will now see a very moderate slowdown in growth,'' which is helping markets, said Claire Collingwood, a trader at CMC Markets in London.

BP, Europe's second-largest oil company, and Shell, the region's largest, may rise. Algeria's oil minister said OPEC members are in ``consultations'' on a recent drop in prices, raising speculation that the group may bring forward output cuts. ""

For info:

http://www.bloomberg.com/apps/news?pid=20601085&sid=aSudbgVXV7DA&refer=europe

 

[Ichiro]

18jan-bloomberg--BOJ Keeps Rate Unchanged on Consumer Spending Concern (Update9)

By Mayumi Otsuma

Jan. 18 (Bloomberg) -- ""The Bank of Japan held its benchmark interest rate at 0.25 percent, averting a clash with government officials who say household spending and inflation are too weak to withstand higher borrowing costs.

The decision was split six-to-three, the bank said today in Tokyo, prompting traders to bet on a February increase. Board members were divided over the outlook for consumer spending, Governor Toshihiko Fukui said.

Government calls for restraint this week spurred speculation the bank would wait for the release of fourth-quarter data next month to gauge the strength of consumer prices and spending. Fukui plans to raise rates, the lowest among major economies, to head off a repeat of the 1980s investment bubble that triggered a decade of stagnation.

``The impression that they caved to political pressure is unavoidable,'' said Noriko Hama, professor of economics at Doshisha Business School in Kyoto. ``It's not a bad decision, given the statistics, but it certainly does not look good for the BOJ.''

Investors increased bets the bank will raise rates in February to a 69 percent chance, up from 42 percent before the decision, according to Credit Suisse Group. Credit Suisse calculates the chances of a quarter-point rate increase based on trading in contracts for the exchange of interest payments.

``Three board members voted against the decision, leaving the possibility that more members may vote for a rate increase next month,'' said Maki Shimizu, an interest-rate strategist in Tokyo at UBS Securities Japan Ltd. The previous six decisions to keep rates on hold were unanimous.

Consumer Spending

The yen fell to 121.28 per dollar from 120.67 late in New York yesterday. It earlier touched a 13-month low of 121.33. Tadahiko Nashimoto, director of foreign exchange at Barclays Plc in Tokyo, said the yen may weaken to 125 this month.

The yield on five-year notes climbed 2.5 basis points 1.235 percent at 4:40 p.m. in Tokyo.

Fukui said the bank didn't notify the government of its decision in advance. The policy board's analysis was entirely based on economic and price data, he said.

``Developments in Japan's economy have so far deviated slightly downward from the outlook'' made in October, the central bank said earlier today. The economy and prices are still expected to ``develop broadly in line'' with expectations. ""

for info:

http://www.bloomberg.com/apps/news?pid=20601080&sid=a7tZdHy1mEIs&refer=asia

 

[Ichiro]

18jan-bloomberg--sian Stocks Climb to Two-Week High; Takeda, Woodside Advance

By Stuart Kelly

Jan. 18 (Bloomberg) -- ""Asian stocks rose to a two-week high. Takeda Pharmaceutical Co. led gains among Japanese drugmakers after two companies said they are in merger talks, boosting speculation there will be further industry takeovers.

``Pharmaceuticals is a very, very profitable business, so they have a lot of cash to use for things like buyouts,'' said Masaki Iso, who oversees $7.3 billion at Yasuda Asset Management Co. in Tokyo. ``The M&A trend is now expanding into industries such as pharmaceuticals. The drug market is not expanding, so it's a good candidate.''

Woodside Petroleum Ltd., Australia's second-biggest oil producer, and PetroChina Co., China's largest oil company, rose after crude oil prices rebounded from a 19-month low. Samsung Electronics Co., the world's No. 2 chipmaker, fell after Apple Inc.'s profit forecast trailed expectations, raising concern sales to its customer could decline.

The Morgan Stanley Capital International Asia-Pacific Index added 0.2 percent to 140.58 as of 4:30 p.m. in Tokyo, set for the highest close since Jan. 4. Measures of health-care and energy stocks rose 1.4 percent and 1.5 percent respectively, the biggest gains among the benchmark's 10 industry groups. ""

for info:

http://www.bloomberg.com/apps/news?pid=20601080&sid=aHdT6lgKefZc&refer=asia

 

[Ichiro]

18jan-bloomberg--European Stocks Advance, Led by BP, Shell After Oil Rebounds

By Sarah Thompson

Jan. 18 (Bloomberg) --""European stocks advanced, pushed higher by BP Plc and Royal Dutch Shell Plc, after crude oil rose for a second day in New York.

Assurances Generales de France Allianz SE climbed after Allianz SE, Europe's biggest insurer, offered to buy the rest of the company for about 10 billion euros ($13 billion). Alstom SA gained after sales rose on demand for railcars from Asia.

The Dow Jones Stoxx 600 Index climbed 0.4 percent to 373.31 at 8:12 a.m. in London. The Stoxx 50 and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, added 0.5 percent.

U.S. stocks dropped yesterday on concern technology companies will report earnings below analysts' estimates and following government inflation reports that may prevent the Federal Reserve from cutting interest rates.

Reports today from the U.S. on consumer prices and new housing may provide investors with more signals about inflation in Europe's biggest trading partner.

``Oil stocks will get another boost,'' from rising energy prices, said Andrew French, an equity salesman at E*Trade Securities Ltd. in London. ``Consumer price data which will give us a clearer picture on the inflationary environment.''

BP, Europe's second-largest oil company, added 0.7 percent to 540 pence while Shell, the region's largest, advanced 0.8 percent to 1729 pence. ""

for info:
http://www.bloomberg.com/apps/news?pid=20601085&sid=aZBRkm2JEJI4&refer=europe

 

[Ichiro]

18jan-bloomberg--Dollar Approaches 4-Year High Against Yen; Consumer Prices Jump

By Min Zeng and Ye Xie

Jan. 18 (Bloomberg) -- ""The dollar approached a four-year high against the yen and gained versus the euro after government reports showed U.S. consumer prices in December increased more than forecast, and housing starts rose.

The bulk of the dollar's rally came earlier today after the Bank of Japan held its benchmark rate at 0.25 percent. Traders boosted the dollar further as the U.S. statistics bolstered speculation the Federal Reserve will leave its benchmark interest rate unchanged at 5.25 percent this quarter.

``The Fed is still justified to remain concerned on inflation,'' said Matthew Strauss, senior currency strategist in Toronto at RBC Capital Markets Inc., a unit of Canada's biggest bank by assets. ``The dollar is getting support here.''

The dollar climbed to 121.52 yen at 8:59 a.m. in New York from 120.67 yen late yesterday, and reached 121.60 yen, the highest since March 21, 2003. The dollar advanced to $1.2917 per euro from $1.2938 yesterday.

U.S. consumer prices rose 0.5 percent in December after being unchanged in November, the Labor Department said today. That compared with the median forecast of 0.4 percent increase in a Bloomberg survey.

Builders broke ground on new homes at an annual rate of 1.642 million last month, up 4.5 percent from November's pace, the Commerce Department said today in Washington. Building permits jumped 5.5 percent, the most in four years.

Zero Chance

Interest-rate futures show traders saw zero chance the Fed will cut its target overnight lending rate between banks in March, down from a 100 percent likelihood seen last month. Policy makers next meet to set rates on Jan. 31.

Fed Bank of Cleveland President Sandra Pianalto said the central bank may still need to take action should inflation fail to keep slowing. ""

for info:

http://www.bloomberg.com/apps/news?pid=20601087&sid=a8K_MMUyVxtc&refer=worldwide

 

[Ichiro]

18jan-bloomberg-U.S. Consumer Prices Rose 0.5%; Core Rate Rose 0.2% (Update2)

By Joe Richter

Jan. 18 (Bloomberg) --"" U.S. consumer prices accelerated in December for the first time in four months, suggesting the easing of inflationary pressures that the Federal Reserve is counting on will be slow.

The consumer price index increased 0.5 percent last month, the most since April and reflecting higher costs for gasoline and natural gas, after no change in November, the Labor Department said today in Washington. Excluding food and energy, so-called core consumer inflation rose 0.2 percent, following no change a month earlier.

The figures come on the heels of slower economic growth in the last half of 2006 that will allow Federal Reserve policy makers the luxury of holding interest rates steady this quarter, economists said. San Francisco Fed Bank President Janet Yellen said yesterday that rates may be high enough to slow inflation.

``For now, core inflation is tame enough for the Fed to be able to sit back and wait and see what happens,'' said Jim O'Sullivan, senior economist at UBS Securities LLC in Stamford, Connecticut.

Federal Reserve Bank of Cleveland President Sandra Pianalto said the central bank's Open Market Committee may still need to take action should inflation fail to keep slowing.

``It is difficult to know where the inflation trend will settle out,'' Pianalto said at a speech in Dayton, Ohio today. ``There is still a risk that the underlying inflation trend will not continue to improve, in which case, the FOMC will need to respond with the appropriate policy actions.'' ""

for info:

http://www.bloomberg.com/apps/news?pid=20601103&sid=annyP4wvUtmQ&refer=us

 

[Ichiro]

19jan-ap- AP-Bernanke Warns Budget Could Hurt Economy

By Jeannine Aversa, AP Economics Writer

Bernanke Warns Strain From Retiring Baby Boomers Could 'Seriously Weaken' Economy

WASHINGTON (AP) --"" Federal Reserve Chairman Ben Bernanke warned Congress Thursday that the economy could be gravely hurt if Social Security and Medicare aren't revamped and urged lawmakers to tackle the nation's thorny fiscal issues sooner rather than later.


"If early and meaningful action is not taken, the U.S. economy could be seriously weakened," Bernanke told the Senate Budget Committee.

It marked the Fed chief's most forceful warning to date on the potential problems facing the United States with the looming retirement of 78 million baby boomers, the oldest of whom will start retiring next year.

This huge wave of retirees will hit the U.S. budget as well as the economy, he said.

"The longer we wait, the more severe, the more draconian, the more difficult the objectives are going to be. I think the right time to start was about 10 years ago," he told lawmakers when questioned about the urgency of the situation.

Absent policy changes by Congress and the White House, rising budget deficits are likely in the years ahead to increase the amount of federal debt outstanding to unprecedented levels, Bernanke said.

That could propel interest rates for consumers and businesses upward, which would be a worrisome development, he said.

"Thus a vicious cycle may develop in which large deficits lead to rapid growth in debt and interest payments, which in turn adds to subsequent deficits," he said. Ultimately, a big expansion of the nation's debt "would spark a fiscal crisis, which could be addressed only by very sharp spending cuts or tax increases or both," Bernanke warned.""

for info:

http://biz.yahoo.com/ap/070118/bernanke.html?.v=17

 

[Ichiro]

20jam-bloomberg--China's Stocks Rise, Led by Automakers: World's Biggest Mover

By Zhang Shidong and Yidi Zhao

Jan. 19 (Bloomberg) --"" China's stocks rose to a record, completing the biggest weekly jump in eight months. Shanghai Automotive Co. led gains by automakers on speculation lower gasoline prices will encourage more people to purchase cars.

``The demand for automobiles has been very strong since November,'' said Lu Yizhen, who oversees about $640 million at Citic-Prudential Fund Management Co. in Shanghai. ``The lower oil price will further strengthen sales of cars in China.''

China Merchants Bank Co. rallied after the lender, the country's most profitable, estimated 2006 earnings surged more than 50 percent as it took market share from the four biggest state-owned banks. China Vanke Co. led a rebound among property stocks after the government said changes to its land tax collection policy won't boost developers' tax bills.

The Shanghai and Shenzhen 300 Index, which tracks yuan- denominated A shares listed on China's two exchanges, climbed 79, or 3.4 percent, to close at 2396.09, the largest increase among markets included in global benchmarks. This week's 10.2 percent gain is the biggest weekly advance since the period ended May 12.

Shanghai Automotive, Chongqing Changan Automobile Co. and FAW Car Co. all surged by the exchanges' 10 percent daily limit. ""

for info:

http://www.bloomberg.com/apps/news?pid=20601089&sid=ad9HgCz_Qa5M&refer=china