Thursday, April 18 2024 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
BEIJING – China’s Ministry of Finance has been circulating a document that contains a proposal to allow local governments to issue bonds to repay existing debts. These bonds would cover debts stemming from projects governments have paid for as of December 31, and involve both direct debts as well as contingent liabilities.
SEOUL – South Korea’s GDP growth picked up to 0.9% q/q in Q3, from 0.5% in Q2, in line with market expectations. Private consumption increased 1.1% q/q, from a 0.3% contraction in the previous quarter. Government consumption growth accelerated to 2.2% in Q3, up from 0.3% in Q2. Gross fixed capital formation rebounded to 1.4%, following a 0.2% contraction, led by construction which grew 2.9%.
LONDON - There is an appreciable risk of war between China and Japan over the Senkaku/Diaoyu Islands, into which the US would be drawn, according to a new publication from the International Institute for Strategic Studies (IISS). Conflict is genuinely possible, despite the potential costs to both nations far outweighing the economic value of the disputed territory, it says.
HONG KONG – The HSBC Flash China Manufacturing PMI has come in at 50.4 in October (50.2 in September), a three-month high, but the Manufacturing Output Index at 50.7 in October (51.3 in September) is at a five-month low. Output, new orders, new export orders and backlogs of work are all increasing, but at a slower rate, and supplier delivery times lengthening at a faster rate.
BEIJING - Representatives of China’s State Administration of Grain have criticised the “shameful” waste every year of 35 million metric tonnes of grain because of poor storage and transportation methods (which they say wastes 27.5 million tonnes) and excessive production (which causes losses of 7.5 million tonnes). They said major grain production regions, such as Liaoning, Jilin, Heilongjiang, Henan, Hebei and Shandong provinces, lack storage buildings for approximately 35 million tons of grain.
HONG KONG – The Hong Kong Stock Exchange is to introduce its first Asia Commodities contracts – London Aluminium Mini Futures, London Zinc Mini Futures and London Copper Mini Futures – for trading on Monday, December 1, subject to market readiness. The three mini metals contracts will trade in RMB.
GENEVA - The International Air Transport Association (IATA) expects international freight volumes to increase at a compound annual growth rate of 4.1% over the next five years. Emerging economies, particularly in the Middle East and Africa, will be the fastest-growing markets.
HONG KONG – ANZ Bank sees China's growth momentum picking up only modestly in Q4, as massive policy easing is unlikely. “We maintain our GDP forecast at 7.5% for the whole year of 2014, and China's economy will grow 7.5% in Q4,” the bank says.
SEOUL – South Korea’s President, Park Geun-hye, has called for ongoing high-level contact to be used as an opportunity to improve inter-Korea relations. “People say: ‘Dialogue is needed, even when at war’. We need to continue to talk in order to ease the tension and to build peace on the Korean Peninsula,” she said.
HONG KONG - China’s third quarter GDP growth came out at 7.3% y/y, slightly down from 7.5% y/y in the previous quarter while above market expectations. In sequential terms, Q3 GDP expanded at a pace of 1.9% q/q sa, decreasing from 2.0% q/q sa in Q2.
TAIPEI - Taiwan’s export orders increased 12.7% on-year in September to a record US$43.31 billion, bolstered by robust global demand for handheld devices, according to the Ministry of Economic Affairs. It was the eighth consecutive month of growth and the best in three-and-a-half years.
HONG KONG - China’s export growth picked up to 15.3% y/y in September, from 9.4% in the prior month, better than market expectations, reflecting improving demand from advanced economies, especially the US. Shipments to the US and the EU grew 15.3% y/y and 14.9% y/y in September, compared with 9.4% and 12.1% in August.
SEOUL - The Bank of Korea has cut its policy interest rate by 25bps to 2.00% while also trimming its 2014 and 2015 GDP forecasts by 0.3% and 0.1%, respectively, to 3.5% and 3.9% and lowering its 2014 and 2015 CPI forecasts to 1.4% and 2.4% (previously 1.9% and 2.7%).
SINGAPORE - India's State Governments are on the verge of gaining much more discretion in the use of transfers from the Central Government. Ratings agency Standard and Poor’s says Prime Minister Narendra Modi's scrapping of India's Planning Commission is a significant step in enhancing the autonomy of the States.
SINGAPORE - Standard & Poor's says Malaysia's proposed 2015 budget supports its view that the Government remains committed to its fiscal consolidation plans. The budget targets a deficit of 3% of GDP for 2015, down from 3.5% in 2014 and 3.9% in 2013.
HONG KONG - China’s State Council has promulgated a set of new rules to regulate local government debt. Chief among them is the central government’s “no-bailout” principle toward debt obligations of local governments. It is also reported that an unspecified transition period will be given to local governments before their full compliance with the new rules.