Asia facing 'stagflationary outlook' amid Ukraine war: IMF

WASHINGTON - Asian nations, like the rest of the world, are being battered by countervailing forces such as the war in Ukraine that are raising prices while holding back growth, the IMF said.

"The region faces a stagflationary outlook, with growth being lower than previously expected, and inflation being higher," said Anne-Marie Gulde-Wolf, acting director of the IMF's Asia and Pacific Department.

The regional outlook, which follows the World Economic Outlook released last week, shows the growth forecast for Asia was cut to 4.9 percent, impacted by the slowdown in China, which is having ripple effects on other closely-linked economies.

Inflation is now expected to rise 3.2 percent this year, a full point higher than expected in January, she said.

"Despite the downgrade, Asia remains the world's most dynamic region, and an important source of global growth," Gulde-Wolf said in remarks prepared for delivery to a press briefing.

But the Russian invasion of Ukraine and Western sanctions on Moscow have driven up food and fuel prices worldwide, while major central banks are raising interest rates to combat inflation, which will pressure countries with high debt loads.

A larger-than-expected slowdown in China due to prolonged or more widespread Covid-19 lockdowns or a longer-than-expected slump in the property market presents "a significant risk for the region."

"This a challenging time for policymakers as they try to address pressures on growth and tackle rising inflation," the IMF official said, noting that the headwinds will exacerbate the damage from the Covid-19 pandemic.

Outlooks vary within the region, depending on countries' reliance on imported energy and links to China, with growth in Pacific island nations slowing sharply, while Australia saw a slight upgrade, she said.

Governments will need strong responses, starting with targeted aid to poor families most harmed by higher prices, the IMF said.

Many will need to tighten monetary policy amid rising inflation, while those with high debt loads may have to cut spending and even seek debt relief, the fund economists said in a blog post.

"Slower growth and rising prices, coupled with the challenges of war, infection and tightening financial conditions, will exacerbate the difficult policy trade-off between supporting recovery and containing inflation and debt," the blog said.

Agence France-Presse

Asia's rising coronavirus cases a worry as vaccine doubts cloud campaigns

SINGAPORE - India, South Korea and Thailand faced mounting coronavirus infections on Thursday, undermining cautious hopes that Asia might be emerging from the worst of the pandemic as worries about safety threatened to delay vaccination drives.

India reported a record 126,789 new cases, the third day this week tallies have surged to more than 100,000, catching by surprise authorities who have blamed crowding and a reluctance to wear masks as shops and offices reopen.

More infectious variants of the virus may have played a role in India's surge, some epidemiologists say, with hundreds of cases found of variants first detected in Britain, South Africa and Brazil.

The alarming numbers have led to New Zealand putting a temporary ban on anyone arriving from India, even for the first time blocking New Zealand citizens from coming home, for about two weeks.

"We are temporarily suspending entry into New Zealand for travellers from India," Prime Minister Jacinda Ardern told a news conference in Auckland.

New Zealand, which has virtually eliminated the virus within its borders, recorded 23 new cases at its border on Thursday, 17 from India.

Two other countries that managed to largely keep the coronavirus under control during the first year of the pandemic were also grappling with new waves, though smaller than India's.

South Korea reported 700 new cases on Thursday, its highest daily figure since early January, and the prime minister warned that new social distancing rules would likely be needed.

Thailand, which has been planning a cautious re-opening of its tourist industry, reported a rise in new daily infections to 405 on Thursday, taking its total number of infections to 30,310, with 95 deaths.

Adding to Thai worries, it has detected 24 cases of a highly contagious virus variant first detected in Britain, its first reported domestic transmission of the variant.

Cases are also rising in parts of Europe but South America is the most worrying region of the world for infections, with cases mounting in nearly every country, the director of the Pan American Health Organization (PAHO) said on Wednesday.

SUSPENDING SHOTS

Asia's increasing cases comes as worries are growing over the safety of one of the most prominent vaccines against the virus.

The European Medicines Agency on Wednesday said it found rare cases of blood clots among some adult recipients of AstraZeneca Plc's COVID-19 vaccine, although it said the vaccine's advantages still outweighed the risks.

Both South Korea and the Philippines have suspended use of the vaccine for people under 60 because of possible links to blood clots, while Australia and Taiwan said they would continue to use it.

Worry about the vaccine could delay immunisation drives in Asia, some of which are already dogged by supply problems. Campaigns in most parts of Asia lag those in places like Britain and the United States.

Australia's program to vaccinate its near 26 million people is more than 80 percent behind its original schedule.

Authorities there had pledged to administer at least 4 million first doses by the end of March but could only deliver 670,000. The government blamed supply issues from Europe.

While India's cases mount, vaccine centres in several parts of the country, including hardest-hit Maharashtra state, have been running out of supplies.

China, where the novel coronavirus emerged in late 2019, is driving ahead with its vaccination campaign, administering about 3.68 million doses on Wednesday, taking its total number of doses given to 149.07 million, authorities said.

Japan's vaccinations are far behind those in most major economies, with only one vaccine approved and about 1 million people having received a first dose since February, even as it struggles with new cases.

Infections in Tokyo spiked by 545 cases on Thursday, adding to worries about the Olympics and Paralympics, delayed from last year and now due to start at the end of July.

The government scrambled to calm a social media furore saying it was not looking to prioritise vaccines for its Olympic athletes, dismissing a media report that it was considering doing so.

Japan is not insisting that arriving athletes be vaccinated but there will be frequent tests while they are in Japan. There will be no foreign spectators and a decision on domestic ones has yet to be made.

-reuters

South Korea leads virus success in Asia as drug trial raises hope

South Korea, once one of the hardest-hit countries in the coronavirus pandemic, reported no new cases on Thursday, boosting hopes of an eventual return to normality as US scientists hailed the results of a major drug trial.

The good medical news caused equities to rally, despite mounting deaths worldwide and abysmal economic figures caused by the COVID-19 crisis.

Data showed the pandemic, which has killed more than 224,000 people, has plunged the United States into its worst economic slump in a decade, and has left Germany expecting its biggest recession since the aftermath of World War II.

But for the first time since the new disease was detected there in mid-February, South Korea reported zero new infections.

The East Asian nation had the world's second-largest coronavirus outbreak for a period after the virus emerged in China late last year.

But with an aggressive test-and-trace strategy and widespread social distancing, it has managed to bring the spread of the pathogen under control.

"This is the strength of South Korea and its people," said President Moon Jae-in as he announced the milestone.

Meanwhile in the first proof of successful treatment, a clinical trial of the drug remdesivir showed that patients recovered about 30 percent faster than those on a placebo.

"The data shows that remdesivir has a clear-cut, significant, positive effect in diminishing the time to recovery," said Anthony Fauci, the top US epidemiologist.

- Hope in Asia -

South Korea's virus death toll is around 250 -- vastly lower than that of Italy, Britain, Spain and France, which have each recorded more than 24,000 fatalities, and the United States, topping the table with a third of global deaths.

Other parts of the region have seen similar success in their fight against the virus.

Infections have dwindled in China after it imposed extremely strict lockdown measures on millions of people earlier this year. Its official toll is around 4,600, although doubt has been cast on the figures' accuracy.

Hong Kong, a city of seven million where there have been just four virus deaths, reported no new cases for the fifth straight day on Thursday.

And New Zealand has declared the battle won against widespread, undetected community transmission.

However the economic costs are beginning to mount, raising fears of an era-defining global crash and increasing pressure worldwide to ease lockdowns despite fears of a second wave of contagion.

- Recession warning -

The US announced that economic output collapsed 4.8 percent in the first quarter -- ending more than a decade of expansion.

On Thursday, France and Spain both said their economies had fared even worse, contracting 5.8 percent and 5.2 percent respectively, while the Eurozone economy as a whole also shrank.

Federal Reserve chairman Jerome Powell warned worse was to come, and economic activity will likely drop "at an unprecedented rate" in the second quarter.

Germany, Europe's largest economy, has succeeded in holding off the devastating death tolls seen elsewhere, but is still bracing for an overwhelming economic hit.

Germany "will experience the worst recession in the history of the federal republic" founded in 1949, Economy Minister Peter Altmaier warned, predicting that GDP would shrink by a record 6.3 percent.

The International Labour Organization said half the global workforce -- around 1.6 billion people -- are in "immediate danger of having their livelihoods destroyed".

One of the worst-hit sectors is the aviation industry, but an unprecedented drop in demand for fossil fuels means global energy emissions are expected to fall a record eight percent this year, the International Energy Agency said.

- Drug trial -

Experts have warned that only a vaccine will allow the full removal of restrictions that this year put half of humanity under some form of lockdown.

But there have been encouraging signs in the search for a treatment.

Fauci likened remdesivir to the first retrovirals that worked, albeit with modest success, against HIV in the 1980s.

The drug failed in trials against the Ebola virus, and a smaller study, released last week by the WHO, found limited effects among patients in the central Chinese city of Wuhan, the disease's original epicentre.

Senior WHO official Michael Ryan declined to weigh in on the latest findings, saying he had not reviewed the complete study.

"We are all hoping -- fervently hoping -- that one or more of the treatments currently under observation and under trial will result in altering clinical outcomes" and reducing deaths, he said.

While the world keeps looking for signs of progress against the pandemic, research is also revealing frightening new details about COVID-19.

Britain and France have both warned of a possible coronavirus-related syndrome emerging in children -- including abdominal pain and inflammation around the heart.

"I am taking this very seriously. We have absolutely no medical explanation at this stage," French Health Minister Olivier Veran said.

Experts have also warned of longer-term psychological tolls on both children and adults after weeks or even months in isolation.

burs-kaf/hg/axn

Agence France-Presse

Asia steps up virus efforts as second wave of infections strikes

HONG KONG, China — From Australia's Bondi Beach to the streets of New Delhi, authorities across Asia have ramped up efforts to stem the spread of the deadly novel coronavirus amid fears of a second wave of infections in places where outbreaks had appeared under control.

Tighter travel restrictions were imposed in several countries as the number of cases in the region soared past 95,000 — a third of the world's infections, an AFP tally shows.

Outside China — where the virus was first detected in December and infected more than 80,000 people — South Korea is the hardest-hit country in Asia with more than 8,500 cases.

While the number of infections in China has been falling for weeks, other countries are seeing the toll gather pace from spread of the highly contagious virus.

Cases rose by roughly a third in Thailand overnight to nearly 600, fueling scepticism about claims in neighbouring Myanmar and Laos of zero infections.

Three doctors treating virus patients in Indonesia died, taking the country's death toll to 48 with 514 confirmed infections.

Most cases are in Jakarta, where businesses have been ordered closed for two weeks.

After shutting its borders to foreigners and non-residents, Australia told citizens to also cancel domestic travel plans, with the number of cases topping 1,300.

Bondi Beach and several other popular swimming spots were closed after crowds of sunbathers defied a ban on large outdoor gatherings.

Pubs, casinos, cinemas and places of worship will be shuttered for up to six months starting Monday.

India curfew

Pakistan suspended international flights in a bid to prevent the virus spreading.

Officials in Sindh — the country's second-most populous province — ordered a  lockdown effective midnight.

Pakistan has reported 5,650 suspected cases, 646 confirmed infections, and three deaths from the virus.

In nearby Bangladesh, however, only 27 cases have been reported, with two deaths.

Millions of people in India were in lockdown Sunday as the government tested the country's ability to fight the pandemic.

Officials said every private sector worker in New Delhi must work from home this week unless they are providing an essential service. Most public transport will also be halted.

Billionaire Anand Mahindra, whose vast Mahindra Group business empire includes cars and real estate, said his manufacturing facilities would try to repurpose to make ventilators.

Testing has expanded in the country of 1.3 billion people amid concerns that the 360 reported cases, including seven deaths, vastly understates the true scale of the crisis.

People took to their balconies in major cities after Prime Minister Narendra Modi urged Indians to thank medical workers and emergency personnel by clapping or banging pots and pans for five minutes at 5:00 pm Sunday.

The World Health Organization has called for "aggressive" action in Southeast Asia, fearing that a major outbreak could cripple the region's often decrepit health care systems.

Second wave

Authorities are now dealing with a second wave of infections in places where outbreaks appeared to have been brought under control as people return from abroad.

Singapore is banning all short-term visitors to the densely populated city-state after a surge of imported cases took its total to 445 — including its first two deaths on Saturday.

In Hong Kong, where the worst had appeared to be over, the number of cases nearly doubled in the past week as more people fly back to the financial hub.

Infections in Malaysia hit 1,306 — more than half linked to an international Islamic gathering held last month, with attendees later returning to Singapore and Indonesia with the virus.

In Sri Lanka, where 82 cases were reported, guards fired on inmates in a northern prison when they tried to break out, angry over a ban on family visits to prevent the spread of the virus.

Two convicts were killed and six others wounded.

Authorities also put restrictions on the sale of two malaria treatments amid fears of a run on the drugs after US President Donald Trump said that they might be effective to prevent a COVID-19 virus infection — though scientists agree that only more trials would determine if chloroquine really works and is safe.

Papua New Guinea, which has one confirmed infection, declared a 30-day state of emergency and halted domestic flights and public transport for two weeks.

Guam, which has 15 cases, confirmed a 68-year-old woman had died of COVID-19 — the first virus-related death in the Pacific.

Agence France-Presse

Asia-Pacific economies face $211-billion hit from virus, says S&P

HONG KONG — The coronavirus could wipe more than $200 billion off Asia Pacific economies this year, S&P Global ratings warned Friday, sending growth to its lowest level in more than a decade, as governments struggle to combat the disease.

In a worst-case scenario, China could see growth of less than three percent, while Japan, Australia and Hong Kong could "flirt with recession", it said in a report.

Fears about the impact of the outbreak, which has spread to at least 85 countries since it began in China in late December, have hammered world markets as investors fret over its economic impact.

S&P said it expected the region to grow 4.0 percent this year as supply and demand shocks blow a $211 billion hole in the economy. That compares with a 4.8 percent estimate given in December and would be the worst performance since a contraction in 2008 caused by the global financial crisis.

"Asia-Pacific's outlook has darkened due to the global spread of the coronavirus," it said. "This will exert domestic supply-and-demand shocks in Japan and Korea. It will mean weaker external demand from the US and Europe"


The report said economies were suffering from the double-whammy of weak demand as consumers stay home for fear of catching the disease, and falling supplies as industries are rocked by shutdowns.

It saw China's economy -- which was already stuttering before the crisis struck -- expanding 4.8 percent this year, which would be the worst in three decades.

However, it added that in the worst case, which "assumes localized reinfections as people return to work and the re-imposition of some restrictions on activity" growth could crash to just 2.9 percent.

Hong Kong, which suffered its first recession last year since 2008, was tipped to shrink further.

The city, along with Singapore, Thailand, and Vietnam would be the hardest hit, with tourism -- which has been battered globally -- accounting for around 10 percent of growth on average.

Still, S&P did say that economies would likely see healthy rebounds.

"A U-shaped recovery is likely to be delayed until the third quarter if signs emerge by the second quarter that the virus is globally contained," the report said.

"We assume that the coronavirus will not permanently impair the labour force, the capital stock, or productivity -- hence, the region's economies should be employing as many people and producing as much output by the end of 2021 as it would have done in the absence of the virus."

Also on Friday, the Asian Development Bank said it saw China taking a $103 billion hit, or 0.8 percentage point hit to GDP, while losses could hit $22 billion -- or 0.2 percentage points -- for other developing economies in the region.

"The magnitude of the economic losses will depend on how the outbreak evolves, which remains highly uncertain," the bank said in a statement.

Agence France-Presse

Taiwan's parliament approves same-sex marriages in first for Asia

TAIPEI, Taiwan — Taiwan's parliament legalized same-sex marriage on Friday in a landmark first for Asia as the government survived a last-minute attempt by conservatives to pass watered-down legislation. 

Lawmakers comfortably passed a bill allowing same-sex couples to form "exclusive permanent unions" and another clause that would let them apply for a "marriage registration" with government agencies.

The vote—which took place on the International Day Against Homophobia, Transphobia and Biphobia—is a major victory for the island's LGBT community who have campaigned for years to have equal marriage rights and it places the island at the vanguard of Asia's burgeoning gay rights movement.

In recent months conservatives had mobilized to rid the law of any reference to marriage, instead putting forward rival bills that offered something closer to limited same-sex unions. But those bills struggled to receive enough votes.

Gay rights groups hailed the vote on Friday, saying the ability to apply for a "marriage registration"—known as Clause Four—put their community much closer to parity with heterosexual couples.

"The passage of Clause Four ensures that two persons of the same-sex can register their marriage on May 24th and ensure that Taiwan becomes the first country in Asia to legalize same-sex marriage and to successfully open a new page in history," said the Taiwan Alliance to Promote Civil Partnership Rights.

Court order 

Two years ago Taiwan's top court ruled that not allowing same-sex couples to marry violates the constitution with judges giving the government until May 24, 2019 to make the changes or see marriage equality enacted automatically.

Other key sections of the law were still being debated and voted on Friday, including what, if any, provisions there will be for same-sex couples to adopt.

Whatever the result, the law will not bring full parity with heterosexual couples as even the most progressive version only offers biological adoptions.

Gay rights groups had previously indicated they were willing to accept compromises, as long as the new law recognized the concept of marriage, adding they could fight legal battles over surrogacy and adoption down the line.

"In Taiwan a marriage will take effect when it's registered, so allowing marriage registration is no doubt recognising the marriage itself," Victoria Hsu, a gay rights lawyer, told AFP.

Families divided 

In the last decade, Taiwan has been one of the most progressive societies in Asia when it comes to gay rights, staging the continent's biggest annual gay pride parade.

But the island remains a staunchly conservative place, especially outside urban areas.

Conservative and religious groups were buoyed by a series of referendum wins in November, in which voters comprehensively rejected defining marriage as anything other than a union between a man and a woman, illustrating the limited popular support.

In a Facebook post President Tsai Ing-wen said she recognized the issue had divided "families, generations and even inside religious groups".

"Today, we have a chance to make history and show the world that progressive values can take root in an East Asian society," she added in a tweet ahead of the vote.

Tsai had previously spoken in favour of gay marriage but was later accused of dragging her feet after the court judgement, fearful of a voter backlash.

Taiwan goes to the polls in January.

Thousands of gay rights supporters gathered outside parliament for the vote, despite heavy downpours.

"We are just a group of people who want to live well on this land and who love each other," gay activist Cindy Su told the crowd.

But opponents were incensed by the vote, saying the inclusion of the "marriage registration" clause ignored the referendum.

Tseng Hsien-ying, from the Coalition for the Happiness of Our Next Generation, told local media the vote "trampled on Taiwanese people's expectations that a marriage and a family is formed by a man and a woman, a husband and a wife".

Australia and New Zealand are the only places in the wider Asia-Pacific region to have passed gay marriage laws.

Taiwan is the first place in Asia to do so.

Vietnam decriminalized gay marriage celebrations in 2015, but it stopped short of full legal recognition for same-sex unions.

source: philstar.com

Trump brings tough trade message to APEC

DANANG, Vietnam — U.S. President Donald Trump set out a strong message on trade at a meeting of Asia-Pacific countries in Vietnam on Friday, saying the United States could no longer tolerate chronic trade abuses and would insist on fair and equal policies.

Trump said the United States was ready to make a bilateral deal with any country in the Indo-Pacific region, but only on the basis of “mutual respect and mutual benefit.”

Although he was addressing a meeting alongside the summit of Asia-Pacific leaders, Trump repeatedly referred to the Indo-Pacific region and mentioned the importance of India in his speech.

“When the United States enters into a trading relationship with other countries or other peoples, we will from now on expect that our partners will faithfully follow the rules,” he said in the seaside resort of Danang.

“We expect that markets will be open to an equal degree on both sides and that private investment, not government planners, will direct investment,” he said in a speech ahead of a summit of Asia-Pacific Economic Cooperation leaders.

Trump arrived in Vietnam from China on the fourth leg of a 12-day trip to Asia. Redressing the balance of trade between Asia and the United States is at the center of Trump’s “America First” policy he says will protect U.S. workers.

The difference between Trump’s and China’s approaches was made more stark by comments in a later speech from Chinese President Xi Jinping, who said globalization was an irreversible trend and voiced support for multilateral trade deals.

While China has by far the biggest trade surplus with the United States, Vietnam is also on the list of those surpluses the Trump administration seeks to reduce.

APEC, which has long championed free trade, has itself been convulsed by the changes under Trump.

Since Trump abandoned the Trans Pacific Partnership TPP trade deal early in his presidency, the remaining 11 members have struggled to build momentum to keep it alive.

Leaders of TPP countries are due to meet on Friday after talks among ministers ended in confusion on Thursday with Japan’s economy minister saying that they “agree in principle” and his Canadian counterpart saying that was not true.

Trump broke early with the “Pivot to Asia” of the Obama administration, worrying some traditional allies that he would allow China to extend its increasing dominance.

South China Sea

Danang itself sits on the shore of the South China Sea, one of the region’s biggest security headaches and where China’s neighbors challenge its sweeping claim to most of the waterway as having no basis in law.

Trump said the region’s future depended on upholding “freedom of navigation and overflight, including open shipping lanes.” He also mentioned “territorial expansion” among evils such as drugs, people smuggling and terrorism.

Vietnam has become one of the most vocal critics of China’s claims in the South China Sea and its construction of artificial islands.

In a sign of possible competition with China’s grand Belt and Road plan, Trump said he would push the World Bank and Asian Development Bank to fund infrastructure development and would reform U.S. development finance institutions.

Trump said that would “provide strong alternatives to state directed initiatives that come with many strings attached.”

“Above all, we seek friendship and we don’t dream of domination,” he said.

Danang has a special place in U.S.-Vietnamese history: it was where the first U.S. ground troops disembarked in 1965 in the escalation of a war that would last another decade before the communist victory.

Danang was close to some of the heaviest fighting and its air base was the route through which many Americans of Trump’s generation were sent to the war.

Trump himself did not serve, receiving five deferments — one for bone spurs in his heel.

source: interaksyon.com

Standard Chartered axes 15,000 jobs, announces $5.1B capital raise

Hong Kong, China - Asia-focused British bank Standard Chartered said Tuesday it would axe 15,000 jobs and raise $5.1 billion in capital after posting a "disappointing" third-quarter loss as it struggles to return to growth.

The job losses are part of a major restructuring that will cost around $3 billion, the bank said.

A Standard Chartered spokeswoman said she could not give any further details of the job cuts.

More than half of the restructuring costs would come from potential losses on liquidating assets and businesses, the bank said in a statement.

The remaining charges would be from "potential redundancy costs" of a planned headcount reduction of 15,000, as well as goodwill write-downs, it added.

The bank reported an unexpected pre-tax quarterly loss of $139 million compared with a $1.53 billion profit a year earlier, in a performance described as "disappointing" by group chief executive Bill Winters.

Revenue was down 18.4 percent to $3.68 billion and impairment losses increased from $536 million to $1.23 billion for the quarter.

Shares in the bank plunged as much as 6.2 percent on the Hong Kong stock exchange in the wake of the results – its stock value has fallen 32 percent in the past year.

"I know a lot of people losing their jobs is not good, (but) from a business point of view, that's what they have to do," Hong Kong-based financial analyst Jackson Wong told AFP.

Wong said loan losses were the main reason the bank swung to a pre-tax loss, adding that it needed to "control costs and try to remodel (its) business".

source: interaksyon.com

Asia extends losses as China woes spread, yen shoots up

TOKYO - Asian equities extended losses on Thursday as concerns over China's market turmoil spread, while the safe-haven yen shot to a seven-week high as global risk appetite ebbed.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.2 percent, hovering near a 17-month low struck the previous day.

Japan's Nikkei dropped 1.8 percent, Australian shares lost 0.3 percent and South Korea's Kospi fell 0.9 percent.

The focus in Asia again turned towards how Chinese stocks would fare later in the session, with a series of increasingly aggressive attempts by authorities so far having failed to stem the massive exodus from a once booming market.

The country's stock markets have plunged nearly 30 percent over the last three weeks.

"Fundamentally, China is coming back to a point of attraction –the monstrous P/E ratios have come back to more realistic levels. However, the bursting bubble means value is unlikely to factor into thinking in the interim. The repercussions haven't completely played out yet," Evan Lucas, market strategist at IG in Melbourne, wrote.

China's securities regulator took the drastic step late on Wednesday of ordering shareholders with stakes of more than 5 percent from selling shares for the next six months in a bid to halt a plunge in stock prices.

U.S. shares slid sharply overnight on growing fears that nose-diving Chinese shares could destabilize the world's second- largest economy and have global implications.

The doom-and-gloom mood - already heightened earlier in the month by prospects of Greece leaving the euro - benefited the yen, often sought in times of economic uncertainty.

The dollar stood little changed at 120.815 yen, within reach of a seven-week low of 120.41 touched overnight when it suffered a bruising 1.5 percent fall.

The greenback was weighed down further as U.S. Treasury yields continued falling on flight-to-safety bids and new signs that the Federal Reserve may be hesitant about raising interest rates, as shown by their policy meeting minutes.

The dollar's tumble against the yen helped the euro, which climbed to $1.1075, pulling further away from a one-month trough of $1.0916 plumbed on Tuesday.

Commodities, far from immune to the slide in global equities, remained subdued. U.S. crude nudged up 0.4 percent to $51.86 early on Thursday but has shed nearly nine percent so far this week.

Copper received a reprieve overnight thanks to the dollar's plunge, but the metal still remained within reach of a six-year low. Copper on the London Metal Exchange was down 0.4 percent at $5,495 a tonne after hitting the six-year trough of $5,240 a tonne on Wednesday.

source: interaksyon.com

Asian shares erase gains, China factory weighs

TOKYO - An index of Asian shares erased its early gains on Tuesday after a measure of Chinese factory activity unexpectedly skidded to an 11-month low.

The flash HSBC/Markit Purchasing Managers' Index (PMI) dipped to 49.2 in March, below the 50-point level. Economists polled by Reuters had forecast a reading of 50.6, slightly weaker than February's final PMI of 50.7.

MSCI's broadest index of Asia-Pacific shares outside Japan was down about 0.1 percent.

The private survey signaled persistent weakness in the world's second-largest economy that is likely to add to calls for more policy easing from Beijing.

"A renewed fall in total new business contributed to a weaker expansion of output, while companies continued to trim their workforce numbers," Annabel Fiddes, an economist at Markit said.

The Shanghai Composite Index, which has recently pushed to seven-year highs, sagged 0.3 percent in early trading. Japan's Nikkei stock average slipped about 0.5 percent, pulling away from the previous session's 15-year highs.

The U.S. dollar edged slightly higher on the day, but still remained well off its recent highs as investors bet that the U.S. Federal Reserve will stay its hand on hiking interest rates in the months ahead.

Underscoring that the long-term view remains intact but the near-term is unclear, Fed Vice Chair Stanley Fischer, the central bank's second-in-command, said on Monday that the Federal Reserve is "widely expected" to begin raising interest rates this year though the policy path remains uncertain.

Fischer said the stronger dollar and weaker oil prices figure in U.S. policymaking, but said the central bank is "trying to look through those phenomena."

The dollar plunged last week after the Fed cut its inflation outlook and its growth forecast. The market consensus is that the Fed will hold off raising rates until at least September, rendering short-term directional bets difficult to make.

The dollar index, which tracks the greenback against a basket of six major rivals, edged up about 0.2 percent to 97.179 .DXY, but remained below its 12-year peak of 100.390 struck on March 13.

The dollar was up 0.1 percent on the day against its Japanese counterpart at 119.80 yen, but remained well below Friday's session high of 121.20 and levels above 122 yen touched earlier this month.

The euro stood at $1.0923, down about 0.2 percent from the previous session but still well above a 12-year nadir of $1.0457 plumbed last week before the Fed's statement.

The euro got a lift against the dollar on Monday after European Central Bank President Mario Draghi said he expected consumer prices to rise gradually by the end of the year even if they might remain very low or negative in the months ahead.

Some market participants took this as a sign that the ECB might wrap up its bond-buying scheme early, though Draghi said it intended to carry out purchases at least until end-September.

The weaker dollar lent support to dollar-denominated commodities, though some investors took profits on recent rallies. U.S. crude futures edged down about 0.4 percent to $47.28 a barrel after soaring 1.9 percent in the previous session.

Spot gold edged down about 0.2 percent after a four-day rally, to $1,187.10 an ounce.

source: interaksyon.com

Carmudi raises $25-M for Asia and Latin America expansion

MANILA, Philippines — The online car classified ad platform Carmudi of the Rocket Internet group has raised $25 million in funding to strengthen its operations in Asia and Latin America.


“The funding will be crucial in boosting our operations in Asia and Latin America,” company co-founder and global managing director Stefan Haubold said in a statement. “Our goal is to be the number one car classified platform in all our markets. There are over 300 million active Internet users that we are aiming to tap into in these markets.”

Carmudi was launched in October 2013 and now has presence in 20 countries. In the Philippines, the platform officially started in January 2014.

At present, Carmudi said they have recorded listing of over 300,000 vehicles globally.

Recently, Carmudi expressed optimism on their growth prospects in the Philippines due to sustained expansion in automotive sales.

“We are excited for the local automotive industry as sales remain resilient and steady,” Subir Lohani, Carmudi Philippines managing director, said.

Last year, local automotive sales grew 30 percent last year to 234,747 from 2013.

“Thirty percent is a bigger number in terms of inclusive growth. One thing I can tell for sure is that the Philippines is a major key market for Carmudi’s growth,” Lohani said.

PLDT presently has a 6.1 stake in the Rocket Internet group.

InterAksyon.com is the online news arm of TV5, which is also part of the PLDT group.

source: interaksyon.com

Asia shares edge up, Greece uncertainty lingers

SYDNEY - Most Asian share markets were fractionally higher on Monday following a record close on Wall Street, with investors cautiously optimistic the European Union would make progress this week on a debt deal with Greece.

Oil prices extended their bounce as Brent topped $62 a barrel, while the major currencies stayed locked in recent tight ranges.

Data from Japan showed the economy emerged from recession in the final quarter of last year, though growth of 0.6 percent was short of market forecasts.

Investors still seemed encouraged and the Nikkei firmed 0.6 percent in early trade.

MSCI's broadest index of Asia-Pacific shares outside Japan recouped a small initial loss to inch ahead.

The index boasted its highest close since late October on Friday but is bumping up against a major band of chart resistance in the 484 to 486 area.

Australia's main index eased 0.2 percent, while South Korean shares rose by a matching amount.

Holidays will be a feature this week with the United States off on Monday and much of Asia celebrating the Lunar New Year. China's markets are off from Feb. 18 right through to the 24th.

The Eurogroup of finance ministers meets in Brussels later Monday to try to find common ground with Greece' new government, in talks that could drag on for some time.

Greece said on Sunday it was confident of reaching agreement in negotiations with its euro zone partners, but reiterated it would not accept harsh austerity strings in any debt pact.

Markets have generally assumed a compromise would eventually be found, given the alternative might be a disastrous Greek exit from the euro.

The S&P 500 ended at a record high on Friday, as energy shares gained with oil prices, while the Nasdaq hit a 15-year high helped by technology stocks.

The Dow gained 0.26 percent, while the S&P 500 added 0.41 percent and the Nasdaq 0.75 percent. The FTSEuroFirst index of 300 leading shares closed up 0.64 percent, helped by upbeat growth data from Germany.

Without a clear outcome on Greece, there is little conviction to buy or sell the euro. As a result, the common currency has been drifting in a slim $1.1262-1.1534 range in the last few weeks. It was last flat at $1.1400.

Against the yen, the euro was a touch softer at 135.00, off a three-week peak of 136.70 reached last Thursday. The dollar slipped to 118.59 yen, recoiling from a one-month high of 120.48 set last Wednesday.

The main mover on Monday was sterling, which scaled a six-week peak following recent hawkish-sounding comments from the Bank of England. The pound climbed as far as $1.5435 in early trade, from around $1.5407 late on Friday.

In commodities, oil was supported by signs that deeper industry spending cuts may curb excess supply. Brent crude rose 42 cents to $61.94 per barrel, while U.S. crude added 34 cents to $53.12 per barrel.

source: interaksyon.com

Asia shares take comfort from U.S. data, yen nurses losses

TOKYO - Asian shares took solace from data showing broad U.S. economic strength even as signs of spreading weakness in China and Europe checked risk appetite, while the yen nursed its losses after sliding to multi-year lows against the dollar and euro overnight.

MSCI's broadest index of Asia-Pacific shares outside Japan was up slightly in early trade. It was on track for a weekly loss of over 1 percent, but was underpinned by record finishes by the Dow Jones industrial average and S&P 500 after a spate of U.S. data added up to a picture of broad economic strength.

Initial U.S. weekly jobless claims fell, factory activity in the U.S. mid-Atlantic region grew at its fastest pace in two decades and existing home sales strengthened, in stark contrast to Thursday's disappointing data releases from Europe and China.

"The raft of data releases from the U.S. continues to paint an upbeat assessment for the U.S. economy at a time when numbers elsewhere have disappointed," strategists at Barclays wrote in a note.

Japan's Nikkei stock average edged down about 0.1 percent in early trade.

The dollar was steady against the yen from late U.S. levels at 118.20 yen, after it scaled a seven-year peak of 118.98 on the EBS trading platform on Thursday.

The euro was also flat on the day at 148.26 after it soared to a six-year high of 149.12 yen in the previous session.

In commodities markets, U.S. crude extended gains from Thursday, adding about 1 percent to $76.61 after closing higher on Thursday. The strong U.S. economic data helped it snap a three-day losing streak, though oil markets remained wary ahead of whether the Organization of the Petroleum Exporting Countries will agree on reducing production when it meets next week.

Spot gold was steady on the day at $1,192.80 an ounce, on track for a weekly gains despite pressure from the stronger greenback.

source: interaksyon.com

Indonesia inaugurates outsider Widodo as president

JAKARTA - Joko Widodo, Indonesia's first leader without deep roots in the era of dictator Suharto, was sworn in as president Monday but faces huge challenges to enact a bold reform agenda.

The inauguration, which was attended by foreign dignitaries including US Secretary of State John Kerry and Australian Prime Minister Tony Abbott, capped a remarkable rise for a softly-spoken politician who was brought up in a riverside slum.

Widodo, known by his nickname Jokowi, worked his way up through local politics before securing the presidency in July following a close race against controversial ex-general Prabowo Subianto.

He is the country's first president from outside an ageing band of political and military figures who have ruled the world's third-biggest democracy since the end of the three-decade Suharto dictatorship in 1998.

But fears are growing that a hostile parliament dominated by parties that opposed Widodo at the election, and the new leader's status as a novice in national politics, could make it impossible for him to push through reforms aimed at reviving Southeast Asia's top economy and helping society's poorest.

At a ceremony in parliament, Widodo, wearing a black suit and traditional cap, stood for the national anthem alongside outgoing president Susilo Bambang Yudhoyono, before taking the oath.

"In the name of God, I swear that I will fulfil my obligation as the president of Indonesia as best as I can and as fairly as possible," he said.

Lawmakers and visiting dignitaries packed out the parliament for the ceremony, and there was applause when Prabowo walked in after speculation he would not attend, the latest sign of a thaw after weeks of political tensions.

Crowds had gathered across Jakarta to celebrate the inauguration of Widodo, a 53-year-old former furniture exporter who won legions of fans with his man of the people image during his time as Jakarta governor.

"I am proud of him. I don't mind spending money to travel here to watch this first-hand," said Sunti, who like many Indonesians goes by one name and had travelled a long distance from her hometown for the inauguration.

After the ceremony, Widodo and his new vice president, Jusuf Kalla, will travel in a horse-drawn carriage accompanied by a parade to the presidential palace.

In the evening the new leader, a heavy metal fan, is expected to join rock bands on stage at an outdoor concert.

About 24,000 police and military personnel were deployed to secure the day's events.

Critical moment for economy

But the euphoria of the inauguration is likely to be short-lived, analysts warn, as Widodo faces up to the task of leading the world's fourth most populous country, with 250 million people spread over more than 17,000 islands, at a critical moment.

Growth in Southeast Asia's top economy is at five-year lows, corruption remains rampant, and fears are mounting that support for the Islamic State group could spawn a new generation of radicals in the world's most populous Muslim-majority country.

Widodo has set out an ambitious reform agenda to tackle the country's many problems, but there is concern the notoriously fractious parliament could prove a hindrance.

However Prabowo's appearance at the inauguration was the second sign of easing tensions in just a few days after he unexpectedly met Widodo Friday for the first time since the election and pledged support, and raises hopes for the new leader's prospects.

In recent weeks, Prabowo's supporters in parliament had used their majority to abolish the direct election of local leaders, a move opposed by Widodo, and win key posts in the legislature.

But analysts cautioned it was too early to say if the reconciliation would last or help Widodo.

Widodo's first test will be to reduce the huge fuel subsidies that eat up about a fifth of the budget, a move economists say is urgently needed but which risks sparking large street protests.

He is also expected to announce his new cabinet later in the week.

Kerry's attendance was in part aimed at seeking support from Southeast Asian nations in the fight against the Islamic State group, which has taken over vast swathes of Iraq and Syria.

source: interaksyon.com

Asian shares, dollar cheered by upbeat U.S. data

TOKYO - Asian stocks started the week on a brighter note on Monday, after solid U.S. data and earnings calmed tumult in global financial markets and reassured investors worried about the health of the world economy.

The Thomson Reuters/University of Michigan index of consumer sentiment was surprisingly strong in early October, rising to more than a seven-year high. Other data also showed new housing starts rose more than expected last month, suggesting U.S. economic growth was solid.

The upbeat U.S. data has brought some calm to markets after a week of turbulence as signs of softening global growth rattled investors, sending volatility spiking to levels not seen in years.

"Sentiment has seemingly been unaffected by the market volatility," strategists at Barclays said in a note to clients.

MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.6 percent in early trade, and Japan's Nikkei stock average surged about 2.6 percent, retaking some of the 5 percent it shed in the previous week.

On Wall Street on Friday, all major stock indexes climbed more than 1 percent, though the S&P 500 posted its fourth straight weekly decline, its longest streak in more than three years.

U.S. earnings will remain in the spotlight this week, with results due from 128 S&P 500 companies, including six Dow components.

Out of the 81 S&P 500 component companies that have already reported third-quarter results, 64.2 percent have beaten expectations, a rate slightly below the average over the past four quarters but better than the past 20 years.

Asian investors will also pay attention to developments in Hong Kong, where pro-democracy protests entered their fourth week and demonstrators appeared increasingly willing to confront police.

U.S. Treasuries posted their second straight day of declines on Friday, and their rising yields added to the dollar's appeal.

The yield on benchmark 10-year notes stood at 2.198 percent in Asian trade, steady from Friday's U.S. close of 2.199 percent and well above 17-month lows plumbed last week.

Speculators boosted their bullish bets on the dollar in the week ended Oct. 14 to their largest since late May last year, still showing optimism for U.S. economic prospects, data from the Commodity Futures Trading Commission showed on Friday.

The value of the dollar's net long position increased to $43.04 billion from $40.91 billion the previous week. Net dollar-long positions notched their fourth straight week of rises, and totaled at least $30 billion for the ninth straight week.

The euro was last down about 0.1 percent at $1.2748, while the dollar added 0.2 percent against the yen to 107.12 yen.

The yen's drop to a six-year low against the dollar of 110.09 on Oct. 1 followed a rapid decline of 8 percent over three months, and sparked fears at some Japanese companies. Nearly half of Japanese firms think the government should start defending the yen at this month's dollar high of 110, according to a Reuters survey released on Monday.

In commodities trading, Brent crude rose about 0.3 percent to $86.44 a barrel, bouncing from last week's nearly four-year lows as investors bought back into a market they said was oversold. U.S. crude rose about 0.8 percent after logging its third weekly decline.

Spot gold inched down abut 0.1 percent to $1,235.90 an ounce, after marking its second straight weekly gain.

source: interaksyon.com

Oil prices rise ahead of US jobs report

SINGAPORE, October 3, 2014 (AFP) - The cost of oil rose in Asia Friday ahead of the latest US jobs report and after hitting multi-month lows a day earlier in response to key exporter Saudi Arabia cutting prices.

US benchmark West Texas Intermediate (WTI) for November delivery rose 16 cents to $91.17 while Brent crude for November gained 11 cents to $93.53 in mid-morning trade.

Singapore's United Overseas Bank (UOB) said investors are keenly eyeing the release of the September US jobs report later Friday.

"For the September non-farm payrolls, markets are looking at a job creation of 215,000, up from 142,000 in August, while unemployment is expected to stay unchanged at 6.1 percent," UOB said.

US jobs figures are closely watched by crude investors for clues on the state of economic recovery and demand in the world's top oil consumer.

The gains on Friday come after WTI prices tumbled below $90 in New York intra-day trade following Riyadh's announcement of lower prices for the fourth straight month.

WTI retreated to $88.18 -- a level last seen on April 23, 2013 -- before recovering to $91.01.

In London, Brent dropped to $91.55 a barrel, last hit in June 2012, but later rebounded to $93.42 at the close.

Analysts say the move by Saudi Arabia, OPEC's biggest producer, signals its focus on maintaining market share amid a broader increase in production by rivals.

source: interaksyon.com

Dollar gains ground on yen, Japan shares test highs

SYDNEY - The U.S. dollar was holding broad-based gains in Asia on Tuesday in a boon for shares of Japanese exporters but a burden for oil, gold and stocks in the energy majors.

As the dollar finally broke to a six-year peak on the yen and a one-year top on the euro, Brent oil sank to 16-month lows while gold carved out a three-month trough.

A falling yen tends to be viewed as positive for Japanese exporters and corporate profits, and helped lift the Topix 0.2 percent to 1,301. That was within a whisker of this year's peak at 1,308.08 and a break there would put it on ground last trod in July 2008.

According to Nomura Securities, a fall of 1 yen against the dollar boosts aggregate operating profits at Topix firms by 300 billion yen.

Markets elsewhere in the region were steady with MSCI's broadest index of Asia-Pacific shares outside Japan down a slight 0.1 percent.

Despite market concerns over China's economy, stocks there have been buoyed by talk of more stimulus and reform measures.

The CSI300 of the leading Shanghai and Shenzhen A-share listings edged higher on Tuesday having put in its best performance in a year last week with gains of almost 5 percent.

On Wall Street, the Dow closed down 0.15 percent, while the S&P 500 fell 0.31 percent but the Nasdaq eked out a 0.2 percent gain.

Energy led the decline, with the S&P energy index .SPNY off 1.6 percent and Exxon Mobil down 1.5 percent.

Investors were now eagerly awaiting the launch of new products by Apple later on Tuesday in a much-hyped event at Cupertino, California.

Apple has fed high expectations, with promises by executives that the company's best product pipeline in 25 years is being readied inside its secretive facilities.

Dollar up, pound down

In currencies, the dollar index climbed as far as 84.425, bringing into view the July 2013 peak of 84.753. A break there will take it to highs not seen since July 2010.

Giving bulls encouragement was a research from the San Francisco Fed noted that investors are pricing in a lower trajectory for interest rates rises than members of the Fed itself are.

"The market's interpretation is that perhaps it had better re-price those expectations," said Emma Lawson, senior currency strategist at National Australia Bank.

As a result, yields on 10-year U.S. Treasuries rose to 2.496 percent US10YT=RR, up from a low of 2.3870 touched last Friday after the soft August payrolls report.

The greenback raced to a high of 106.28 yen, while the euro slumped to a low of $1.2878. Investors were already giving the common currency a wide berth after the European Central Bank surprised on Thursday with a fresh round of stimulus.

Sterling was nailed to 10-month lows after a second opinion poll found a marked increase in support for Scottish independence just 10 days before the country votes on whether to break away from the United Kingdom.

The TNS poll found support for independence had risen six points to 38 percent, just a pip behind the 'No' camp at 39 percent. That follows a YouGov poll that showed approval of independence at 51 percent against the unity camp's 49 percent, the first to find a majority for a 'Yes' vote.

The YouGov poll caused tremors in financial markets on Monday, knocking the pound lower and hurting stocks of companies with a large Scottish presence. Sterling was at a fresh trough of $1.6079 on Tuesday in Asia.

The gains for the dollar meant losses for commodities, with gold down at $1,255.56 an ounce after losing more than 1 percent on Monday.

Brent crude oil eased another 6 cents to $100.14, after slumping as far as $99.36 overnight, the lowest since May 2013. U.S. crude managed to bounce 30 cents to $92.96 a barrel.

source: interaksyon.com

Asian shares track Wall Street lower, yen gains

SYDNEY - Asian share markets slipped on Friday as troubles at a small Portuguese bank managed to wrongfoot investors already made anxious by the US earnings season and a spate of disappointing economic data globally.

Tensions in the Middle East also continued to simmer with Israeli officials seeming to hint at a possible assault on Gaza by ground forces.

As a result, yields on safe-haven US and German debt fell, the yen scaled a five-month peak against the euro and gold hit a three-and-a-half month high.

Japan's Nikkei fell 0.7 percent, while Australia eased 0.4 percent. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.3 percent.

Analysts emphasised that the woes of one Portuguese bank were no threat to the sovereign's rating and rather the news served as an excuse to book profits on what has been a long rally in European stocks and bonds.

Indeed, there were signs investors were taking money out of peripheral euro zone debt and seeking higher returns in the emerging world. It was notable that MSCI's index of emerging market stocks actually rose on Thursday having hit a 17-month peak earlier in the week.

In contrast, European stocks were buffeted as trading in Banco Espirito Santo was halted after a 19 percent drop. The bank's largest shareholder suspended trading in its own shares and bonds due to "material difficulties" at its own largest shareholder.

The damage was all the greater as data showed unsettlingly weak readings for May industrial production in France and Italy. These followed equally disappointing numbers from Germany and the UK, which has led many analysts to cut their estimates of economic growth for the second quarter.

Portugal's market fell 4.2 percent and Italy's FTSE MIB 1.9 percent, pulling down the European index by 0.78 percent.

While the fate of a relatively minor bank in Europe would not normally have had much affect on Wall Street, it was enough to make investors reconsider the market's high valuations as the earnings season gets into full swing.

The S&P 500 index fell 0.41 percent, while the Dow eased 0.42 percent and the Nasdaq 0.52 percent.

The S&P 500 financial sector index fell 0.5 percent and Wells Fargo & Co, which reports earnings later Friday, lost 0.7 percent.

With stocks off the boil, Treasuries picked up the usual safe-haven bid for shorter-term debt which is prized for its deep liquidity. Yields on two-year notes fell over 4 basis points to 0.4561 percent, a marked reversal from a high of 0.5360 percent hit just on Wednesday.

German debt played much the same role in Europe, where yields on 10-year bund yields ended at a 14-month trough of 1.20 percent. Bonds in the euro zone periphery were not so lucky, with yields on Portuguese, Spanish and Italian paper all rising sharply.

The itch for safety benefited the Japanese yen which climbed a full yen to 137.76 per euro. The dollar dipped to 101.26 yen even as it gained on the euro to $1.3599.

Yet the higher-yielding Australian and New Zealand dollars remained well supported, again suggesting there was no widespread retreat from risky assets.

In commodities, gold was up at $1,336.01 having touched a 3-1/2 month top of $1,345.00.

Oil prices fell anew after a brief rally on Thursday. Brent was off 13 cents at $108.54 a barrel, while U.S. crude eased 16 cents to $102.77.

source: interaksyon.com

High-tech goods to lead trade growth over next 15 years -- HSBC

WASHINGTON - Exports of high-tech products will grow more quickly than exports of other goods over the next 15 years as emerging Asia moves away from being a low-cost production hub for foreign brands and toward developing value-added local products, according to research from HSBC.

High-tech goods would make up more than 25 percent of goods traded by 2030 compared to 22 percent in 2013, HSBC said in its latest global trade report, which forecast trade would pick up only slowly in the near term.

The value of global goods trade would rise at an average rate of 8 percent a year from 2014 to 2030, with high-tech goods rising about 9 percent a year, HSBC said. Mineral fuels would rise 5 percent a year and raw materials about 6 percent.

World Trade Organization data show fuels and mining products were the fastest-growing export category between 2009 and 2012, followed by agricultural products. Exports of office and communications equipment rose 27 pct over the period.

HSBC said much of the future increase in high-tech trade would be driven by internationalization of supply chains, with parts for high-tech products crisscrossing national borders, but Asian firms would also snare market share from Western competitors.

HSBC forecast that by 2030, China would account for more than half the global trade in high-tech goods. Hong Kong and the United States would remain in second and third place, although with a lower market share, and Korea would displace Singapore as the fourth-biggest exporter of high-tech goods.

China, home of the world's third-biggest smartphone manufacturer, Huawei Technologies, and the biggest PC maker, Lenovo Group, is already ramping up spending on research and development, as is Malaysia.

"These two economies may have depended on foreign investment to fuel their early growth in high-tech exports, but they are now increasing their technological know-how and moving up the value chain to develop high-tech products of their own," HSBC said in the report, based on forecasts from Oxford Economics.

China, India and Indonesia are among 10 countries on a U.S. "watch" list for failing to protect U.S. companies' intellectual property rights, for example through lax rules against trade secret theft or poor patent protection.

The United States and European Union are also pushing China to resume talks on expanding a list of high-tech products covered by a 16-year-old pact that eliminated duties on products including personal computers, laptops and telephones.

The HSBC report showed China accounted for 36.5 percent of high-tech goods exports in 2013, followed by Hong Kong at 13 percent. The United States was in third place at 9.6 percent. In 2000, the United States was the world's biggest tech exporter with a market share of 29.2 percent.

HSBC said Asian countries also logged a high share of high-tech imports, as did the United States.

"This internationalization of supply chains explains why the United States - the designer of devices such as the iPhone and a country with an evident comparative advantage in the high-tech sector - operates a trade deficit in these goods," HSBC said.

"The outsourcing of production of high-tech goods by U.S. companies to serve the large domestic consumer market for these goods means that U.S. companies import a large quantity of assembled products that they have designed themselves."

The data highlight why the United States and other trading partners such as Japan, Canada and Korea are keen to restart talks on the WTO's Information Technology Agreement, or ITA, which reached an impasse in November.

China has said cutting all tariffs to zero would be unfair and wants some products excluded and others to have a long phase-in period, saying the pact has to take into account differing levels of development.

Michael Punke, U.S. ambassador to the WTO, on Monday urged China, as this year's chair of the Asia Pacific Economic Cooperation trade group, to take up calls to conclude an expanded ITA by the next regional trade ministers' meeting in May.

"We think this is a doable goal and we encourage China, as host country, to exercise leadership in helping to achieve this," he said in a statement.

The U.S. administration estimates expanding the ITA to drop duties on additional technology products could liberalize roughly $1 trillion in global IT and communications trade and increase annual global economic output by $190 billion.

The WTO has forecast global goods trade growth of 4.5 percent in 2014, below the average rate of 5.4 percent recorded from 1982 to 2012.

source: interaksyon.com

Asian shares tick up cautiously as China data looms

TOKYO - Asian shares cautiously rebounded from two-week lows on Thursday though investors were in no mood to embrace risk ahead of a batch of Chinese data that may offer clues about the extent of its economic slowdown.

A standoff in Ukraine, signs of weakness and other risks in China's economy and a massive fall in copper prices are spooking investors, though a flat close on Wall Street and some positive regional data helped to underpin some markets.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 percent, recouping a large chunk of its losses the previous day, with Australian shares gaining on strong local employment data.

Japan's Nikkei rose 0.5 percent as Japanese machinery orders beat expectations, though the gain came only after a 2.6 percent drop the previous day, when both European shares and emerging market shares fell to one-month lows.

"What we're seeing today is a reaction to yesterday's sharp decline based on price (valuation) merits," said Hana Daetoo analyst Chang Hee-jong.

"But concerns about China remain the biggest issue for the market, and this will continue to affect markets throughout the first half of this year."

Copper - seen as a good gauge of global economic strength because of its extensive use - stabilized at $6,508 a tonne, keeping some distance from a four-year low at $6376.25 hit on Wednesday.

Still, after a drop of around 7 percent so far this month, investors are worried about a possible unraveling of Chinese loan deals using copper as collateral, which could add more pressure on copper prices.

On Wall Street, the S&P 500 reversed early losses and ended nearly flat, outperforming many others thanks in part to a string of positive data on the U.S. economy.

Investors will keep a close watch on Chinese data due at 0530 GMT, including urban investment, industrial output and retail sales, which will follow a disappointing series of February data in recent days.

"We expect modest downside surprises, which are likely to keep sentiment toward China somewhat negative," analysts at Barclays Capital said in a note.

The diplomatic stalemate between Russia and the West over Ukraine has also led investors to buy traditional safe haven assets.

Gold hit a six-month high of $1374.45.

U.S. Treasuries have erased all their losses after last week's strong payrolls data, with the benchmark 10-year yield at 2.74 percent versus its six-week high of 2.82 percent hit on Friday.

In the currency market, the Swiss franc was little changed after hitting a two-and-a-half year high of 0.8734 franc to the dollar, while the Japanese yen, which is under pressure from the Bank of Japan's easing, also ticked up slightly.

Going against the tide of risk-off trading, the New Zealand dollar hit a five-month high of $0.8527 after the country's central bank raised rates as expected and pointed to further tightening ahead to curb inflationary pressures.

The Australian dollar jumped 0.8 percent to $0.9062 after surprisingly strong local employment data.

U.S. crude futures traded near one-month lows hit on Wednesday after Washington announced a surprise plan for a test release of strategic oil reserves, trading at $98.12 per barrel, near Wednesday's low of $97.55.

But the European benchmark Brent held relatively firm at $108.26 as it drew support from the unfolding crisis over Ukraine.

source: interaksyon.com