The stock market indexes in Asia and Pacific region cut their negative and increased range for the first time in five days after the risk appetite of investors to improve the background of lower stock prices. Regional stock measure MSCI Asia Pacific, which covers the securities markets in ten Asian countries plus Australia and New Zealand increased by 0.5 percent to 116.4 points, rising above his bed one month, which said yesterday. The ratio between the share price of companies in their composition and their expected profit fell to 13.4 in the middle of this week, which is its lowest level since December 2008. Depreciation of the Japanese yen boost shares in Tokyo after speculation that the central bank may intervene in currency markets to reduce exchange rate fluctuations. The main Japanese stock index rose 0.7 percent to 8 906.48 points and the Japanese yen fell against all 16 most-traded currencies. The Governor of the Bank of Japan (YATSB) Masaaki Shirakava will attend the annual economic symposium in Wyoming, USA, this week, which the President of the U.S. Federal Reserve will speak about prospects for the global economy. Analysts say it is not excluded they discussed joint intervention in currency markets aiming to halt the appreciation of the Japanese currency.
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The crude oil began the new week with a promotion. It is mainly due to optimistic sentiment on the stock exchange in China, which were published today, good corporate news. Reason for stock growth in the Asian country became the accounts of companies in the manufacturing sector like Sanyo Heavy Industry and Changsha Zoomlion Heavy Industry Science & Technology Development, who were able to achieve strong growth in profits for the first semester. “Next year the price of oil will be higher because of strong demand growth in developing countries and declining oil supply,” said Neil Baveridge of Sanford Bernstein in Hong Kong. Today the price of oil contracts with delivery in October rose by 0.3 percent to 74.10 dollars a barrel, although at an early stage of trade quotes to move with growth of 0.7 per cent. Thus black gold six-month unstick from bottom, recorded late last week. Then oil with delivery in September retreated to 73.46 dollars a barrel, while quotations for the entire week is pulled down by 2,6 percent.
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Thailand’s economy has achieved growth of 9.1 per cent in the second quarter on an annual basis. This is much more than analysts expected 7.9 per cent and shows that despite the political crisis the country is presented fairly strong this year. Achieved an increase in gross domestic product is very good news to the bloody anti-government protests, which the country experienced during the second quarter. For the first quarter the economy of Thailand increased by 12.6 per cent yoy. This means that for the first half of 2010 increase in annual GDP is 10.6 per cent targets. Because of the strong performance of Thailand’s economic planning agency in the country rose double growth forecast for the whole 2010. It has been an increase in GDP of 7 to 7.5 per cent after the previous expectations were for growth of 3.5 to 4.5 per cent. After strong GDP data in the first half of this year analysts look ahead to the upcoming meeting on Wednesday the central bank must decide on interest rates.
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China has replaced Japan and is now the second largest economy in the world. This is the result of three decades of strong growth that has pulled millions of Chinese out of poverty, Reuters reported. Now facing the country remains the big target - to become the number one economy, which the World Bank is expected in 2025. The news came today And Gang, head of foreign exchange regulator in the country, who published part of his interview for the magazine China Reform the site of his agency. “In fact, China is already the second largest economy in the world,” said Gang. “China is still a developing country and we should be reasonable enough to know its capabilities,” said the specialist, however, in terms of whether it is time to become the yuan international currency. China was very close to the displacement of Japan based on data from 2009, so the news is not much of a surprise. However, GDP per capita is around 3800 dollars, which is quite a bit against the same indicator in the U.S. and Japan.
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China may let its currency be cheaper in case you need support wrapped export adviser said the central bank in an interview with Japanese newspaper. “Due to the fact that there is already flexibility in the exchange rate of the yuan can be devaluing if need support exports,” said Zhou Tsizhan. Tsizhan is a member of committee of senior advisers to the Central Bank of China. He said the main focus of policy is now the exchange rate be kept stable. The purpose of this is not to harm the export sector. “The central bank may not allow the exchange rate to move too fast. The most important thing is to show that exporters and importers, yuanat not change course, although USA is not likely to remain very pleased with it, “he said. The views of Tsizhan is extremely crucial, as illustrated the reluctance of China to radically reform the monetary policy. Month ago, Beijing announced that it terminated the fixed exchange rate against the dollar, which stood nearly three years and that increases the flexibility of its currency.
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After years of economic growth China has the largest energy consumer in the world, displacing the U.S., which ranks more than a century, show to the International Energy Agency, quoted by the Wall Street Journal. Paris-based agency, whose forecasts are considered key indicators in the global energy industry, announced that last year China had consumed the equivalent of 2.252 billion tonnes of oil, or 4 percent more than in the U.S. energy consumption equal to the equivalent of 2.17 billion tons of petroleum. Oil is the equivalent energy consumption of all forms of energy including oil, nuclear, coal, natural gas and renewables. However, the global recession hit the U.S. more than China, which affected U.S. industrial production and energy consumption. However, total energy consumption of China reflects double-digit economic growth for many years, the newspaper said. As an illustration of how quickly increased energy consumption in China Edition indicate that 10 years ago, Chinese consumption has been barely half the U.S.. “The fact that China overtook the U.S. as the biggest consumer of energy in the world symbolizes the beginning of a new energy era in history,” said chief economist Fatih Birol Energy Agency. USA was the largest user of energy from the early twentieth century.
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Exchanges in Asia registered a new decline, which contributed to the deterioration of their presentation for the second quarter. As the main drivers of decline since March may be those debts crisis in Europe and China’s attempts to limit growth in property prices in the country. Today the regional MSCI Asia Pacific Index fell 1.1 percent to 112.73 points, which leads to its lowest level since June 11. The quarterly index was pulled down by almost 10 per cent, which never happened in the last three months since 2008. The exchange in Tokyo today, the Nikkei 225 fell 2 percent to 9 382.64 points, seven months to reach bottom. The quarterly index has collapsed by as much as 15 percent, which also has not happened since the end of 2008 onwards. Then markets were under pressure because of the bankruptcy of Lehman Brothers. More negative situation in China seems today where Shanghai Composite lost 1.2 percent to 2 398.37 points. But he has collapsed with the objectives of 23 percent last quarter, the biggest quarterly decline in more than two years.
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Most stock indexes in Asia and the Pacific region took up carefully after strong reductions on Wednesday. Extractive companies ran the most profitable region due to expectations that the new Prime Minister of Australia Julia Gilard will postpone his planned by Kevin Rudd previous strong increase in taxes on the profits of mining companies. In his inaugural Gilard, the first woman - Prime Minister of the country declared itself ready for negotiations, the 40 percent tax on the profits of mining companies in Australia, Kevin Rudd is planning to introduce in 2014. Shares of Japanese exporters fell after news that exports of the country slows down its growth pace for the third consecutive month in May. However, the main Japanese stock market finished the session with a measure of increase of 0.1% to 9 928.34 points, while the Australian S & P / ASX 200 fell 0.1 percent to 4479 points. The regional index MSCI Asia Pacific, which covers the stock markets in ten Asian countries plus Australia and New Zealand moves to increase by 0.1 percent to 117.14 points. Exchange pessimism of investors it fell 1.8 percent during the previous two sessions. Previously MSCI Asia Pacific climbed for eight consecutive days.
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Most extensive talks in the history of modern relations of the United States and China concluded some agreements on contentious issues such as exchange rates and trade, announced Wall Street Journal. China is committed to gradually change the exchange rate of yuan, but did not specify deadlines for this. Regarding the actions of Beijing that foreign companies identified as protectionism from Chinese side have any hope of a resolution establishing the World Trade Organization. Moreover, Chinese authorities have promised to work with the U.S. and other countries to solve the crisis in relations between North and South Korea, however, again without giving details of how this will happen. Finance Minister of the United States has appointed Timothy Gaytnar agreements reached as “progress.
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The problems with public debt in Europe showed how important it is for the U.S. to control its own fiscal behavior, as the country’s debt reached alarming levels, says Chinese finance minister said on CNBC. Against the endless criticisms of China that keeps its currency fixed to the de facto U.S. dollar, the Minister of China finances SMR Guangyao, try to move the focus before the forthcoming summit between the two countries on fears of U.S. economic Beijing policy and in particular on the growing budget deficit. A planned meeting next week will hold a peaceful discussion “on yuan, but only outside pressure would hold the decision to reform the exchange rate that China wants to hold said Guangyao. In pressing for the global economy is the need to stabilize financial conditions in Europe, he added. “The European debt crisis is a challenge not only for the countries like Greece, but it is a problem for the stability of global financial market,” he said.
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