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Apr-24-2011Asian Currencies Gain This Week on Speculation Rates to Rise(topic overview)
CONTENTS:
- Asian currencies strengthened this week, with Singapore '''s dollar reaching a record and Malaysia'''s ringgit a 13-year high, on speculation regional central banks will keep raising borrowing costs to curb inflation. (More...)
- The benchmark Shanghai Composite Index closed with a gain of 20.18 points or 0.67% to 3,027.21. (More...)
- Brent oil LCOc1 rose above $124 a barrel while spot gold held near a record high above $1,500 an ounce in early Asian trade as a sharply weakening dollar supported a broad rally in commodities. (More...)
- Hedge funds boosted the won to a fresh 32-month high against the dollar, despite dollar buying by authorities and news that the government may reduce ceilings on bank's currency derivatives as early as next month, a move widely seen as aimed at taming the currency's rally. (More...)
- Singapore has very low external debt. (More...)
- Investors in Pradas hometown of Milan looking to buy stock in the 98-year-old firm will find themselves 5,800 miles (9335km) away from the action. (More...)
- Keppel Corp. rose 1.6 percent in Singapore after the world's largest oil-rig maker increased profit 7.8 percent last quarter. (More...)
- Once you take into account charges, you could end up losing money even if the renminbi rises a bit. (More...)
- PPI rose 1.2% quarter-on-quarter in the first quarter, accelerating from a 0.1% rise in the final quarter of 2010, taking the annual rise to 2.9%, the Australian Bureau of Statistics said. (More...)
- Elsewhere, the British pound slipped to $1.6516 from $1.6517, while the dollar is flat at 81.90 Japanese yen. (More...)
- Finance Minister Yoon Jeung Hyun said yesterday the government will step up monitoring of financial markets as global capital flows into South Korea may see more volatility with U.S. quantitative easing nearing an end. (More...)
- Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. (More...)
- Among oil producers, Woodside Petroleum gained 2.7% to A$47.86 in Sydney, while Bow Energy, an oil and gas explorer, surged 6.6% to 96.5 Australian cents, the third-biggest gain on the S&P/ASX 200 Index. (More...)
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Asian currencies strengthened this week, with Singapore '''s dollar reaching a record and Malaysia'''s ringgit a 13-year high, on speculation regional central banks will keep raising borrowing costs to curb inflation. The Bloomberg-JPMorgan Asia Dollar index rose to its highest level since 1997 as overseas investors bought a combined $1.7 billion more stocks than they sold in India, South Korea, Taiwan and Thailand this week, according to exchange data. [1] Asian_Currency SINGAPORE: The South Korean won and the Indian rupee led Asian currencies lower on Tuesday as investors took profits amid a drop in the stock market, but losses in the region were limited by exporters and a view that their bullish trend remains intact. Emerging Asian currencies also slid against the yen as market players cut back carry trades, but they may use it as an opportunity to buy back some local currencies such as the won versus the Japanese unit, analysts and dealers said. Investors also turned risk-averse after fears mounted that Greece will have to restructure its debt, possibly as early as this summer, and Standard & Poor's threatened to cut the United States' AAA credit ratings. This prompted currency players to book profits from Asian currencies, which have enjoyed healthy gains on inflows to the regional stocks and bonds, as well as on expectations for further tightening by policymakers to fight inflation. They still held dollar-short positions against the regional currencies to cover more, which will increase the pressure on them before the Good Friday holiday this week, dealers said. [2] ASIAN_CURRENCY SINGAPORE: The Singapore dollar hit a record high against the dollar on Wednesday and the South Korean won matched a 31-month peak, leading gains in their Asian peers as investors returned to higher-yielding emerging Asian currencies after booking profits. [3]
"I think it (the inspection plan) is in line with already outstanding policy guidance that is aimed at slowing won gains, rather than halting them," Said Sacha Tihanyi, a senior currency strategist at Scotia Capital in Hong Kong. "As such, I'd still be bullish KRW at least until the end of the month. I don't think that this will stop (on its own) the won's ability to strengthen." The $2 billion intervention was believed to be the strongest daily dollar-buying by authorities so far this year, traders said. Foreign investors posted their biggest daily stock purchases since July 2010 and local interbank speculators reduced dollar holdings amid weakness in the greenback. The Singapore dollar hit a fresh record high and the Indonesian rupiah touched a seven-year peak on little sign of intervention by their central banks. [4] The most high-profile example is Italian fashion house Prada. It is preparing to go public on the Hong Kong stock exchange and could list there in summer. U.S. leather goods maker Coach may also list shares in Hong Kong, according to a report this month in the International Financing Review. They are following in the footsteps of French skin care firm LOccitane, which raised about 5.5bn Hong Kong dollars ($708m; ''430m) by selling shares to investors in an initial public offering (IPO) in Hong Kong last year, becoming the only French company to be listed. Luggage firm Samsonite, Italian motorcycle maker Ducati and Japanese fashion retailer Baroque, which owns the fashionable Moussy brand, are all also reported to be planning Hong Kong share listings this year. If they want to capitalise on high growth in China, they have to be here. [5] Prada has 14 stores in nine Chinese cities and a further eight outlets in Hong Kong, while Coach has 58 stores in China, Hong Kong and Macau. Prada already generates more than a third of its sales in Asia. Hong Kong has been the worlds biggest market for IPOs for the past two years, eclipsing other major financial centres such as London and New York that have suffered in the aftermath of the global financial crisis. Share offerings are typically well-received, both by big investors such as pension funds and individual investors, who have been known to queue round the block to secure shares in a hot IPO. [5]
"Faltering growth in the developed economies is not going to be something to help Asian countries, and could pose a threat to what is now a robust growth scenario. This dent in confidence is hurting Asian currencies and risk assets for the moment," said Christopher Gothard, Head of FX for Brown Brothers Harriman in Hong Kong. Some Asian currencies have showed strong growth and investors may see a continued fall on more profit taking, although long-term growth story in Asian remains compelling, he added. The Taiwan dollar has risen 4.2 percent against the greenback so far this year and the won also has gained about 4 percent. [2] HONG KONG, April 21(Reuters) - The U.S. dollar slid to a 2-1/2-year low against a basket of major currencies and Asian stocks were poised to hit a 3-year high on Thursday, as investors scrambled to get in front of upward momentum in higher-yielding assets, particularly in emerging markets. [6]
Markets in Hong Kong, Sydney, Jakarta, Singapore, Manila and Mumbai are closed for public holidays. Dealers were taking a breather on Friday after the previous two-day rally that came on the back of strong earnings reports in the United States from corporate giants such as General Electric, Apple, IBM and Intel. The Dow closed up 0.42 percent on Thursday, ending the week at its highest level since June 2008. Those gains followed a big sell-off on Tuesday after Standard & Poor's downgraded its outlook for U.S. sovereign debt, the first such threat to Washington's gold-standard AAA rating. In Tokyo investors were low key ahead of a slew of earnings reports next week, while exporters were hurt by the stronger yen, which harms their competitiveness overseas. [7] The well-above forecast earnings helped Apple's shares moving up 3.1 percent in after-hours trade. The encouraging results came a day after technology giants Yahoo, IBM and Intel warmed the Street with forecast-beating results, offsetting this week's S&P; rating jitters and fresh eurozone debt concerns. Extending its previous session's slide, the U.S. dollar reached a fresh record low of 0.8854 against the Swiss franc on Thursday morning in Asia. [8]
Asian stocks rose yesterday, pushing the regional index to its highest level in more than six weeks, after U.S. companies including Apple reported increased profits, signaling the global economic recovery is accelerating, and commodity shares gained. The MSCI Asia Pacific Index advanced 1.3% to 138.7 at 8:43 p.m. in Tokyo, headed for its highest close since March 4. [9] The Standard & Poor's 500 Index is showing a rise of 0.4 percent. Global stock markets are currently in the midst of the biggest global rally seen this year and the consistency of strong earnings reports have done nothing to reverse that momentum. This continued yesterday as Apple reported that its quarterly profit nearly doubled. [10]
Equities are extending the biggest global rally of the year after Apple said second-quarter profit almost doubled. OCI Co. jumped to a record after South Korea's biggest polysilicon maker posted a profit surge and Chinese banks gained after Citigroup Inc. said their earnings will rise. Central banks from Thailand to Brazil have lifted interest rates this week, while the Federal Reserve is forecast to maintain stimulus amid prospects for a weak recovery in the world's largest economy. [11] The euro rose to $1.4550 late Friday from $1.4544 late Thursday. It had risen to a 16-month high of $1.4648 during Thursday's trading. Investors have turned away from the dollar this year because they expect the Federal Reserve to keep U.S. interest rates near zero even as other central banks around the world raise interest rates to counteract rising food and energy prices. [12] The Malaysian currency strengthened to as firm as 3.0040, the strongest since Sept. 1997. The central bank was spotted buying dollars at 3.0120 initially, but lowered its bids gradually, dealers said. The Taiwan dollar rose to its highest in more than two months on foreign buying and a rally in local stocks. Foreign investors made their biggest daily purchase of stocks in more than two weeks. [4] Earlier, China's central bank fixed the yuan's mid-point at a record high and the Chinese currency hit another record high against the dollar while officials lamented the impact of imported inflation. Emerging Asian currencies have been boosted by expectations that policymakers will allow their currencies to rise more to contain rising prices, along with inflows to the regional stocks and bonds. [3] The People's Bank of China's decision to fix the yuan at a fresh high record against the U.S. dollar added to bullish views on Asian currencies, which have been trending upward as central banks around the region tighten monetary policies to fight rising inflation. [13]
'''Central banks in Asia, from China to Singapore to Malaysia, seem to be allowing currency gains to help curb inflation,''' said Shigehisa Shiroki, chief trader on the Asian and emerging-markets team at Mizuho Corporate Bank Ltd. in Tokyo. Singapore'''s dollar strengthened 0.4 percent to S$1.2347 against its U.S. counterpart as of 4:44 p.m. local time, according to data compiled by Bloomberg. Taiwan '''s dollar, Indonesia'''s rupiah and Malaysia'''s ringgit all advanced 0.3 percent to NT$28.926, 8,628, and 3.0075, respectively. [14]
Earlier, the Bank of Thailand had been spotted buying dollars at 30.02 and 30.00, dealers said. Thio Chin Loo, a currency strategist with BNP Paribas in Singapore said the Thai currency would rise more slowly than its peers with a forecast of 29.50 by end-2011, citing political risks and slower growth. The baht has risen 0.67 percent versus the greenback so far this year, becoming the worst performer among emerging Asian currencies. [3] "All we can say is that the uptrend in Aussie remains intact." RBS FX strategist Greg Gibbs said, "Central banks are getting flush with reserves and they are probably looking at Aussie as a safe liquid alternative to all major currencies that all have sovereign debt problems." The U.S. dollar also weakened against many Asian currencies this morning, with the Singapore dollar jumping to yet another record high earlier. [15] At the time of writing, Oil is up 0.6 percent, gold is stable with a 0.2 percent gain and silver is trading at a 31-year high. The Australian and Singapore Dollar have risen to record highs against the U.S. Dollar and the Euro is trading at its highest level in 15 months. [10]
'''U.S. dollar funding costs are still low, and investors are going long Asian currencies.''' Singapore'''s dollar gained 1 percent for the week to S$1.2333 against its U.S. counterpart and touched S$1.2329, the strongest level since at least 1981. [1]
The dollar was sent sliding against Asian units as it was weighed by rising stocks prices, increasing risk appetite and lingering fears over the U.S. debt mountain. Regional tech plays were boosted after U.S. computer giant Apple said net profit soared 95 percent in its fiscal second quarter thanks to surging sales of iPhones and iPads. [16] Canon Inc. sank 2.2 percent after the Nikkei newspaper reported the camera maker's profit declined. Kia Motors Corp. rose in Seoul after saying it aims to boost sales in the U.S. to a record this year. Hanjin Shipping Co., South Korea's largest shipping company, rose 0.7 percent after its vessel that was attacked by pirates was rescued. "The dollar weakened on speculation the U.S. will maintain its easy monetary policy," said Juichi Wako, a senior strategist at Nomura Holdings Inc. in Tokyo. "That's a negative factor for Japanese stocks, especially exporters." [17] Japan's Nikkei 225 index was up 0.57 percent, Australia's S&P;/ASX 200 was up 0.8 percent, South Korea's Kospi Composite gained 0.87 percent and New Zealand's NZX-50 rose 0.4 percent. Apple reported that its fiscal second-quarter profit jumped 95 percent on-year on record iPhone sales, strong sales of its iPad tablet computers and Macintosh computers. [8]
Stock markets in Australia, Hong Kong, India, Indonesia, New Zealand, the Philippines, Singapore, Sri Lanka were closed April 22 for holidays. Australia'''s S&P;/ASX 200 Index rose 1.8 percent this week, while Singapore'''s Straits Times Index gained 1.3 percent. [18] Japan'''s Nikkei 225 (NKY) Stock Average increased 1 percent, and Hong Kong'''s Hang Seng Index (HSI) rose 0.5 percent. [18]
Jiangxi Copper Co., China'''s No. 1 producer of the metal, jumped 4 percent to HK$27.30 in Hong Kong. Crude for June delivery climbed about 2 percent in New York this week through April 21, while the London Metal Exchange Index of six metals including copper and aluminum surged 2.1 percent. [18]
Industrial & Commercial Bank of China Ltd. added 1.2 percent in Hong Kong, leading Chinese lenders higher after Citigroup said the companies will report an average 29 percent increase in first-quarter profit. [11]
HONG KONG — Asian stocks rallied for a second straight day on Thursday, with dealers buoyed by another batch of strong earnings in the United States and a jump on Wall Street to a near three-year high. Technology firms were boosted after Apple said its profits almost doubled in the three months to the end of March, which followed solid results from Intel, Yahoo! and IBM. [16] HONG KONG (Dow Jones)--Most Asian markets ended higher on Thursday, with the South Korean stock benchmark racing to a record as technology stocks were cheered by Apple Inc.' s results and as commodity producers rose on a rally in crude oil and gold prices. [19]
Asian Stock HONG KONG: Asian stocks were mixed in holiday-hit trading on Friday, with Tokyo lower after a two-day rally and as the yen continued to strengthen against the dollar. [7]
Many rich Chinese individuals also now have Hong Kong bank and stock trading accounts, adds Mr Ho. "For many mainland Chinese, its not difficult to move funds to Hong Kong, "Mr Ho says. [5] Pradas arrival would also add a touch of glamour to a bourse dominated by property developers, financial firms and industrial conglomerates. Its main locally-listed peer would be the US-founded High Street fashion retailer Esprit, which caters to the mass market. Hong Kong has long been the place to list for Chinese firms seeking to raise funds from overseas, but it is only recently that companies from elsewhere have been beating a path to its door. The Hong Kong Stock Exchange has made efforts in recent years to woo European companies, as most of Chinas biggest firms have already made their market debuts here. This approach is now bearing fruit, highlighting just how far some of the worlds most venerable companies are prepared to go in order to court the Chinese market. [5] For now, foreign firms cannot list on Chinas main stock exchange in Shanghai. Chinese fund managers, who have only begun investing overseas relatively recently, tend to stick to markets close to home, such as Hong Kong. [5]
The benchmark Shanghai Composite Index closed with a gain of 20.18 points or 0.67% to 3,027.21. In Mumbai, the key benchmark indices edged higher for the third straight day buoyed by firm global stocks, data showing resumption of buying by foreign funds, strong response from foreign institutional investors to the initial public offer of gold financing firm Muthoot Finance and Indian Meteorological Department's (IMD) recent forecast of normal monsoon this year. [20] Today the Japanese currency traded at 81.83, and the euro traded near a 16-month high before reports that may show French business confidence was at a three-year high and Italian retail sales rebounded, adding to signs the region's recovery is picking up. The MSCI Asia Pacific Index gained 0.8 percent this year through yesterday, compared with gains of 6.3 percent by the S&P; 500 and of 1.7 percent by the Stoxx Europe 600 Index. [17] Inpex Corp., Japan'''s largest oil and gas explorer, jumped 3.4 percent after commodity prices rose. The MSCI Asia Pacific Index gained 2.2 percent to 138.83 this week, the biggest weekly gain since March. [18] The MSCI Asia Pacific Index slipped 0.3 percent at 9:28 a.m. in Tokyo. More than three shares fell for each that advanced on the measure, which was set for a 1.9 percent gain this week. [17]
Energy shares posted the biggest gains in Asia, led by a 3.5 percent jump in Inpex Corp. Crude oil rose 0.6 percent to $112.12 a barrel on the New York Mercantile Exchange, extending a 2.9 percent jump yesterday that was the biggest increase since March 17. [11] Apple Inc., the world'''s largest technology company by market value, reported net income almost doubled to $5.99 billion, or $6.40 a share, in the fiscal second quarter, exceeding the average estimates of $5.39 a share in a Bloomberg survey of analysts. In Asia, Hynix Semiconductor surged 7.2 percent to 36,600 won this week in Seoul. [18]
Previously chipmaker Intel beat expectations by reporting net profit jumped 29 percent in the first quarter over a year ago and revenue rose 25 percent. "Great earnings numbers from both Apple and Intel this week are giving investors confidence that the U.S. economy is trending up," Hiroichi Nishi, general manager of the equity division at Nikko Cordial Securities, told Dow Jones Newswires. [16] Investor sentiment remained positive after solid overnight gains on Wall Street. "Great earnings numbers from both Apple and Intel this week are giving investors confidence that the U.S. economy is trending up, and for now it's offsetting concerns over debt issues in Europe and nuclear worries," said Hiroichi Nishi, general manager of the equity division at Nikko Cordial Securities. [21]
Sydney added 1.13 percent, or 54.8 points, to 4,913.8, Seoul rose 1.32 percent, or 28.63 points, to 2,198.54 and Shanghai finished 0.65 percent stronger, adding 19.63 points to 3,026.67. On Wall Street the Dow jumped 1.52 percent, its highest level since June 2008, on the back of the earnings. Global stocks have rebounded strongly since Tuesday when sentiment was hurt after Standard & Poor's downgraded its outlook for U.S. sovereign debt. [16] Asian stocks rose for the fourth week in five as U.S. housing starts gained and companies reported earnings that beat estimates, boosting confidence in global growth. [18] Asian currencies also gained after rising earnings at companies including Apple Inc. boosted confidence in the global economic recovery and U.S. spending. Apple, the maker of the iPhone, said this week that second- quarter profit almost doubled. [1]
If you want a diversified basket of currencies, you need to consider a local currency bond fund. The disadvantage of doing this is that once you hold bonds, you're no longer simply looking at currencies. Your returns depend on other factors such as interest rate movements, inflation and credit risk that affect the price of the bonds. The new Aberdeen Global Asian Local Currency Short Duration Bond Fund is interesting because it's the closest thing I've yet seen to just holding a basket of Asian currencies. It invests in relatively short-dated bonds of typically one-to-three years to maturity from a number of Asian governments. It can also use currency derivatives to hedge from one Asian currency into another. It does this where the managers are keener on a country's bond yields than its currency, and vice versa. The value of its holdings will still be affected by interest rates and inflation, but these effects should be smaller than in other Asian bond funds currently available. [22] '''Also, the intervention risk is lowered with most Asian currencies gaining in tandem.''' Thailand'''s baht touched a four-month high after Bank of Thailand Assistant Governor Paiboon Kittisrikangwan said yesterday that interest rates are on a rising trend and the central bank needs to keep raising them as the economy expands. [14]
Asian currencies climbed, led by Singapore '''s dollar, on speculation regional central banks will tolerate faster appreciation and raise borrowing costs to tame inflation. [14] Asian central banks also buy the euro with dollars from intervention, helping to buoy the European single currency, which will eventually support Asian currencies. [4]
Risk appetite also revived, providing more support to the regional currencies, with upbeat corporate results helping alleviate market sentiment, which was hit by S&P;'s warning on U.S. Credit ratings and worries about Greece's debt problems. The regional foreign exchange authorities, including central banks of Malaysia and Thailand, were spotted buying dollars to cap their gains, but they lowered levels of dollar bids rather than stick to specific levels, dealers said. [3] U.S. TOKYO: The dollar was sold against other major currencies in Asia on Thursday as upbeat stock markets gave investors a renewed appetite for risk, dealers said. [23] Emerging Asian currencies also found support from strong stock markets and a broadly weak dollar, with the Malaysian ringgit hitting a 14-year high and the Indonesian rupiah touching a seven-year high. Apart from South Korea, other regional foreign exchange authorities also have been spotted buying dollars in recent sessions to check gains in their currencies, but the moves are unlikely to halt their bullish trend, analysts and dealers said. [4] SINGAPORE (Dow Jones)--Asian stock markets were mostly higher Thursday, cheered by Wall Street's gains Wednesday and Apple's results, with the upbeat sentiment reflected in the foreign exchange market as riskier currencies pushed higher against the U.S. dollar. [24]
SINGAPORE, April 21 (MNI) - The U.S. dollar spent another Asian morning languishing against most major currencies Thursday, barring the yen, as better risk appetite continued to power risk assets and saw the U.S. currency marking hefty losses against the euro and Aussie. [15] SINGAPORECentral banks in South Korea, Thailand and Malaysia intervened Wednesday to slow a surge in their currencies in a broad Asian rally that carried the Singapore and Australian dollars to fresh highs against the U.S. currency. [13] "Central banks are trying to slow the pace of appreciation rather than reversing that, so Asian currencies are likely to be bullish in the near-term, with inflation to remain the key concern," said Ho Woei Chen, an economist at United Overseas Bank in Singapore. South Korea and Indonesia are more willing to allow for currency appreciation as they fight the inflationary pressure, Ho said. [3]
NOONAN: I think at that stage we might even see the Reserve Bank not be so happy about the rise and rise of the dollar particularly if it happens quickly and we could even see some intervention. SNOWDON: In other Asian countries, inflation is a big threat to the economic sunshine they're enjoying now. They're reluctant to let their currencies appreciate believing it would damage exporters. [25]
The dollar stood at 81.88 yen in Asian trade, slightly up from 81.85 yen in New York late Thursday while the euro bought $1.4571 and 119.30 yen against $1.4550 and 119.11 yen on Thursday. A senior trader at a major Japanese bank said the greenback may have reached its support level. [26] Against the yen, the U.S. dollar fell to a 3-day low of 82.23 on Thursday morning in Asia, compared to 82.57 hit late New York Wednesday. [8] Commodity-related currencies rose with the Australian dollar hitting a post-float high against the U.S. dollar at $1.0740, as the hunt for yield intensified on prospects that U.S. interest rates would remain at a record low for a long time. [6] The Singapore dollar hit a record low of 1.2400 per the U.S. dollar helped by demand from interbank speculators and funds. [3] There are much stronger currencies than the U.S. dollar. One such strong currency is the Singapore dollar ( SGD ). [27]
SNOWDON: And Richard Martin believes the time is coming soon -- maybe in five years time when China's currency will be freely traded. Put together these moves shake the pedestal on which the U.S. dollar rests as the world's reserve currency in which most international trade is measured. MARTIN: Its moving for quickly. [25] Over time the Singaporean dollar is likely to gain value against the U.S. dollar. In fact over the past five years it's gained over 23% in value, measured in U.S. dollars. That's a really useful kicker to any type of investment. [27]
If you're an individual in Hong Kong or running a company in Hong Kong now you're allowed to keep an open renmimbi account. They're continually pushing that open and we'll see more of that this year. That has some big implications and we're starting to see foreign firms talk about issuing bonds now in renmimbi instead of U.S. dollar based bonds. [25] Some dealers also said the dollar's losses may have been exacerbated by a scramble to close out positions ahead of the Good Friday and Easter holidays in many centers in the region. Markets in Singapore are closed on Friday only while those in Australia, New Zealand and Hong Kong remain closed until Monday. [15] Hong Kong dollar accounts are also easy, but because the Hong Kong dollar is tied to the USD at a fixed rate, that's not very helpful. [22]
On the bullion market, gold hit a fresh record high of $1,508.88 an ounce in London on Thursday, a day after topping $1,500 for the first time. It closed at $1,504.00 Gold markets in Hong Kong were closed for the Easter break. [26] '''The spa and wellness world has often found exotic cultures alluring and a treasure trove for new ideas,''' says Cathy Chon, founder of life and style consultancy CatchOn in Hong Kong. There was a time, she adds, when Chinese medicine treatments such as acupuncture and cupping were viewed by many as hokey. These days, such services are common in spas, and celebrities such as Gwyneth Paltrow are fans. Other spas around the region are touting some version of face-reading treatments. [28]
Gold closed at $1,507.50-$1,508.50 an ounce in Hong Kong, up from Wednesday's close of $1,500.00-$1,501.00 after the precious metal broke the key $1,500 mark for the first time on Wednesday. [16]
Tokyo gained 0.82 percent, or 78.95 points, to 9,685.77 and Hong Kong ended 1.01 percent, or 242.21 points, higher at 24,138.31. [16] China Unicom (Hong Kong) Ltd., the nation'''s second-largest mobile phone company, surged 7.5 percent to HK$16.12 in Hong Kong. [18] Hong Kong is also a gateway to reach Chinese investors, says Terence Ho, a specialist in IPOs in Greater China at consultancy Ernst & Young. [5]
Hong Kong's Hang Seng Index rose 0.9%, Taiwan's main index added 1.8%, and the Shanghai Composite index was 0.7% higher. [24]
The MSCI Asia-Pacific Index of regional stocks rose 1.2 percent after U.S. companies, including Apple Inc., reported better results than analysts had forecast. [14] The MSCI Asia ex-Japan rose 0.5 percent 504.2, within striking distance of a three-year high at 504.4. Technology stocks got a lift after iPod maker Apple crushed forecasts on roaring global demand for its products. [6]
Sentiment improved as some Indian firms showed strong earnings growth, led by software outsourcer TCS, whose fourth-quarter net profit rose 24 percent to 24 billion rupees ($539 million). TCS stocks however fell on profit booking, closing down 2.23 percent to 1,191.65 after its earnings were announced. [16] April 22 (Bloomberg) -- Asian stocks fell for the first time in three days as Japanese shares declined after the yen hit a three-week high, cutting the outlook for earnings for the nation's exporters. [17] Biosensors has around 30% of the Chinese market for stents, on a par with two local firms. Major international players such as Johnson & Johnson and Abbott share the remaining 10%, with difficulties growing because of their lack of a local distribution network. Unlike its local rivals, Biosensors has its product approved in Europe and Japan and is applying for U.S. approval. It has tie-ups with major medical firms such as Terumo in Japan and Shandong Weigao in China, while Johnson & Johnson has reputedly been interested in buying it ''' so this looks a well-placed business. It's not obviously cheap on a trailing p/e of 34, but has been growing earnings strongly. The Atlantis fund has only been under its current manager for a couple of years, making it hard to judge the long-term strategy. Performance in that period has been very strong at 99% for the fund versus 64% for the MSCI Far East ex Japan, although these were very unusual times coming off the lows of March 2009. [22]
In Tokyo investors were low key ahead of a slew of earnings reports next week as well as next week's U.S. Federal Reserve policy meeting, which will give a clearer idea on the state of the world's number one economy. [26] '''U.S. companies, especially tech stocks, are doing well, and that'''s helping to instill confidence,''' said Mitsushige Akino, who oversees about $600 million in assets in Tokyo at Ichiyoshi Investment Management Co. '''Investors are looking to take a little bit more risk.''' [18]
"A jump in stocks on firm results will double investors' desire to use liquidity and power Asian currencies more," said Jeong My-young, a currency strategist at Samsung Futures in Seoul. [3] Emerging Asian currencies have been supported by inflows into regional stocks and bonds on stronger economic growth as well as expectations that policymakers are making efforts to contain inflation. [4] One way to protect yourself from inflation is to have investments in stronger currencies. These can be held as cash, bonds, stocks, or real estate. Where I live in Argentina, the locals keep their savings in dollars, because they keep their value better than Argentine pesos. [27]
China'''s Shanghai Stock Exchange Composite Index slid 1.3 percent on concern the government will tighten monetary policy to rein in inflation. [18] Japan's Nikkei 225 Stock Average fell 0.5 percent, while South Korea's Kospi Index advanced 0.2 percent after falling 0.1 percent. [17] Japan's Nikkei 225 Stock Average advanced 0.8%, Australia's S&P;/ASX 200 Index gained 1.1% and South Korea's Kospi index climbed 1.3%. [9] Japan’s Nikkei 225 Stock Average advanced 0.8%, Australia’s S&P/ASX 200 Index gained 1.1% and South Korea’s Kospi index climbed 1.3%. [9]
April 21 (Bloomberg) -- Stocks rallied, with the MSCI World Index set for the highest close in two months, after Apple Inc. posted better-than-expected profits and as energy shares gained. [11] Apple rose in extended trading after the maker of iPhones and iPads reported per-share profit of $6.40 a share, beating the average analyst estimate of $5.39 a share in a Bloomberg survey. [11] Among other shares that rose, OCI jumped to a record after South Korea's biggest polysilicon maker said profit surged. [9]
Elsewhere, South Korea'''s won gained 0.2 percent to 1,080.13 per dollar, according to data compiled by Bloomberg. China '''s yuan rose 0.08 percent to 6.5205 and India '''s rupee strengthened 0.1 percent to 44.29. [14] '''The appreciating trend will probably continue next week, and the currency may test the NT$28.7 level.''' Taiwan'''s dollar strengthened 0.4 percent this week to NT$28.930, according to Taipei Forex Inc. The currency touched NT$28.860 yesterday, the strongest level since Feb. 10. Elsewhere, Indonesia '''s rupiah gained 0.5 percent this week to 8,623 per dollar and Thailand '''s baht strengthened 0.7 percent to 29.94. [1] The central bank set the yuan'''s reference rate 0.11 percent stronger at 6.5156 per dollar, the highest level since July 2005. [1] The won slipped 0.1 percent yesterday to 1,080.80 per dollar on speculation the central bank would intervene to curb appreciation. [1]
The baht broke through 30.00 per dollar, which the central bank had defended earlier, after it said it would closely monitor inflation and take action as appropriate. [3] China'''s yuan climbed to the highest level since 2007 on speculation the central bank will allow faster currency gains to help temper inflation. [1]
The Malaysian central banks bought an estimated $500 million to stem the country's currency, dealers said. It lowered dollar bids step by step. [3] A Bangkok-based dealer said the central bank might pull out dollar bids after it raised interest rates. [3]
SINGAPOREThe dollar continued to sell off sharply in Asia on Thursday, prompting central banks in South Korea and Malaysia to try to curb the surge in their currencies to long-term highs by intervening for the second day running. South Korean authorities also said they will inspect foreign-exchange transactions at banks, focusing on activity in the overseas non-deliverable forward market. [29]
The moves kept the South Korean currency weaker than 1,080 per dollar, but it still ended 0.3 percent higher on the day. [4] The currency appreciated 0.2 percent to 6.5067 per dollar in the spot market yesterday and touched a 17-year high of 6.5067, according to the China Foreign Exchange Trade System. [1]
Analysts at United Overseas Bank estimate that at current levels, the Singapore dollar nominal effective exchange rate (NEER) would be about 1.9% above the mid-point of the policy band the Singapore currency is guided within. That midpoint is seen at Sgd1.2615 currently, with the top of that policy band projected at Sgd1.2237, corresponding with the 3.0% level, the analysts said. [15] The Singapore dollar hit a record high on Friday. Their rising trend remain intact and currency players are likely to buy them on dips, analysts and dealers said. [2] State-run importers and importers bought dollars while some suspected the foreign exchange authorities of purchasing the U.S. currency, boosting caution over intervention. Those dollar bids just slowed down the won's strength, dealers said. [3] Basket wise, it is within limits, I reckon," said a European bank dealer in Singapore. The Monetary Authority of Singapore was spotted in previous session at around 1.2390-1.2400, but pulled out bids when the U.S. dollar stayed weak, he added. [4] The U.S. dollar has been heavily sold in the past few days as dealers have developed more risk appetite amid longer-term hopes for the global economy - thanks to surging equities and strong corporate data - while also being affected by lingering concerns over U.S. debt. [26] The lingering U.S. debt problem was also weighing on the dollar following Standard & Poor's warning on Monday it may downgrade U.S. debt, dealers said. [23]
U.S. debt worries pressured the currency, while support for the greenback came as some investors sold the euro to lock in profits in early trade ahead of the Easter holiday. Transactions lacked vigor as Western dealers kept their hands off the market ahead of the long weekend, with a series of public holidays in many countries but not in Japan. [30] Morgan Stanley and General Electric Co. are among companies scheduled to release quarterly results today. Earnings-per-share exceeded predictions for about 75 percent of the 76 companies in the S&P; 500 that reported results since April 11, helping revive investor confidence after S&P; cut its rating outlook for U.S. debt on April 18. The S&P; 500 rose 1.4 percent yesterday, the biggest advance in a month, while the Dow Jones Industrial Average surged to its highest level since June 2008. [11]
The Indian rupee fell to a 2-1/2 week low, tracing losses in the euro and Asian currencies as risk aversion dominated market sentiment against the backdrop of sovereign debt problems in Europe and the United States. Rohan Naik, head of foreign exchange trading at Standard Chartered Bank in Mumbai, said he does not see the rupee weakening beyond 44.70/75, which is a technical support level. [2] The U.S. dollar broke past the key 1.6430 support level against the pound to reach as low as 1.6444 in early Asian trading on Thursday. This set the weakest level for the greenback since January 19, 2010 and more than 30 pips lower than Wednesday's North American session close of 1.6411. [8] Extending its 2-day losing streak, the U.S. dollar touched 1.4582 against the euro in early Asian deals Thursday and this set the lowest level for the dollar since mid-December, 2009. [8]
The U.S. dollar also fell against other major currencies. The dollar index, a gauge of its performance against six other major currencies, has tumbled since Monday to its lowest level since August 2008 at 74.116. [6] Investor sentiment remained positive after solid overnight gains on Wall Street and was also reflected in the foreign-exchange market as riskier currencies pushed higher against the U.S. dollar. [19] Bonds will see huge inflows into currencies like the KRW, BRL, IDR, MYR." The won slid as investors added dollar positions to take profits from the won's recent gains but recovered some of its earlier losses from exporters' demand for settlements. [2]
Aberdeen is mostly known as an equity specialist. They've been building their bond offering lately and have put out a product that may fill a big gap in the market. The problem is that, while sticking some of your cash in currencies that are likely to rise against sterling over time is a very sensible way to diversify, it's not as easy as you'd expect for UK retail investors. There are a few currency exchange-traded funds (ETFs) out there, such as renminbi/dollar and rupee/dollar trackers. [22] The annual management charge for retail investors is 1%, with no entry charge. Those fees are fine; the total expense ratio (TER) is currently a bit higher than I'd expect at 1.8%, but higher TERs are common when funds first launch. As the only product of its type at present, it's worth a look if you're searching for this kind of broad currency investment. [22]
The strategy is now theme-driven and looks for companies where there's a catalyst to drive share price gains in the next six to 12 months. We talked about a few of his current themes. As usual when I discuss fund portfolio ideas in this letter, the assessment represents what I've heard from managers, not my own research. They're intended to be both examples of the manager's thinking and potential ideas for active investors to investigate, not outright recommendations to buy these stocks. [22] "Investors' risk appetite is increasing on the back of brisk gains in stock markets amid growing expectation for economic recovery," Sasaki said. [16] Asian stock markets are trading higher today with investors picking up stocks, tracking overnight cues from Wall Street where the mood was upbeat on the back of some encouraging earnings reports. [8] U.S. and European stocks soared Wednesday, with the Dow in New York closing near three-year highs, on strong earnings reports that beat Wall Street expectations, particularly in the technology sector. [23] Citigroup Inc. also released a statement forecasting an increase in earnings, lifting financial stocks. Read the full post at Spread Betting, where you can also find free guides to technical analysis, financial news, and reviews of spread betting companies such as ig index. This material may not be published in its entirety or redistributed without the approval of Benzinga. [10]
Of the 76 companies in the Standard & Poor'''s 500 Index that posted earnings since April 11, 75 percent have beaten analyst estimates for per-share profit, according to data compiled by Bloomberg. [1]
For the week, the won appreciated 0.8 percent. '''The won benefitted this week mainly as improved earnings and the global economic outlook boosted investment into higher- risk assets,''' said Byeon Ji Young, a currency analyst at Woori Futures Co. in Seoul. [1] Despite the troubles, global euro currency reserves still show an upward trend. If the European leaders can keep the eurozone intact throughout the world's worst financial crisis in 100 years, it's very foreseeable that the euro will surpass the dollar as the world's primary reserve currency. This will become even more likely with further, inevitable, expansion of the eurozone. [27]
Taiwan'''s dollar touched the highest level in more than two months after official data released yesterday showed the island'''s export orders rose 13.4 percent in March from a year earlier, compared with median forecast of 4.7 percent in a Bloomberg survey. [14] Consumer prices rose 3 percent in March from a year earlier, the most since April 2009, the statistics department said yesterday. Bank Negara Malaysia next has kept its overnight rate at 2.75 percent since July. '''The inflation data increases the odds of a rate increase this quarter,''' said Suresh Kumar Ramanathan, foreign-exchange strategist at CIMB Investment Bank Bhd. in Kuala Lumpur. [14] '''More income from overseas will support the currency.''' The ringgit rose to a 13-year high on speculation the fastest inflation in 23 months will prompt policy makers to raise interest rates when they next meet on May 5. [14]
The gauge fell last week as China'''s inflation rose faster than estimated and the International Monetary Fund cut growth forecasts for the U.S. and Japan. [18]
Hynix Semiconductor Inc. (000660), the second-largest computer memory chipmaker, surged 7.2 percent in Seoul. ZTE Corp., China'''s second-biggest maker of mobile-phone equipment, gained 2.5 percent after its first-quarter profit rose. [18] ZTE gained 2.5 percent to HK$29.15 after reporting a 16 percent gain in first-quarter profit as sales of handsets increased in the U.S. and Europe. [18]
The U.S. stocks zoomed up yesterday as technology firms were boosted after strong results from Apple, Intel and IBM, pushing the DOW to a near three-year high. This provided enough zeal to Asian stocks and Japanese stocks garnered sharply gains. [20] SINGAPORE (Dow Jones)--Most Asian markets ended higher Thursday, with technology stocks cheered by Apple Inc.' s and Intel Corp.' s results and as commodity producers rose on a rally in crude-oil and gold prices. [21]
Brent oil LCOc1 rose above $124 a barrel while spot gold held near a record high above $1,500 an ounce in early Asian trade as a sharply weakening dollar supported a broad rally in commodities. [6] Euro-yen meanwhile was at Y119.78 compared with Y119.55 overnight after a Y119.52 to Y120.04 range. The Australian dollar rose to a fresh record high this morning, with the move assisted by a slightly higher than expected first quarter PPI reading, released this morning. [15]
The Australian dollar is at a record high against the U.S. currency. It's staying above 107 U.S. cents which it hit on Wednesday night. [25] The city-state's currency found some demand when it weakened past 1.2500, but market players stayed wary of further risk aversion and U.S. dollar-short coverings by interbank speculators. The peso slid on dollar-short coverings, but leveraged accounts showed interests in buying the Philippine currency on dips at its session low of 43.47 per dollar. [2] There's a currency I think of as the "anti-dollar" that continues to appreciate against the U.S. dollar. [27] The U.S. dollar stayed pressed and strong cues from the overnight U.S. equities and upbeat corporate earnings boosted the sentiments. Commodities held their ground after terrific advances yesterday and traders largely sidelined the uncertainty on the Libyan front. [20] NOONAN: Basically you've got a very weak U.S. dollar, the investment risk appetite is quite strong, just in the last 24 hours we saw very strong rises in commodity prices; copper rose 2.5%, equities rose around the world. [25]
The Australian dollar does very well in that environment. Considering the problems in Europe and the problems in Japan those who want to sell U.S. dollars, Australia is a very inviting place for investors. [25]
"Investors are selling the dollar and the yen to finance investment" in riskier assets with higher returns. [16] The won lost 0.8 percent to 13.2654 versus the yen, but the fall may provide investors to build up yen-short positions, dealers and analysts said. [2] Dealers said risk appetite remained strong despite an abundance of ongoing issues which should remain worrisome for investors. The euro in particular appeared to brush off widening spreads on the eurozone's periphery and back and forth arguments about whether Greece will soon restructure its debt. [15] Dealers said the euro's gains saw the single currency punch through rumored option barriers at $1.4550 earlier in the day, with the resulting short-covering then helping the move along. [15]
In other markets, the Straits Times index in Singapore added.91%, the Seoul Composite index in South Korea jumped 1.32% while the Taiwan Weighted index clocked a gain of 1.64%. Euro managed to hold its recent gains, hitting 16-month highs amid strong risk appetite. [20] OCI advanced 12% to 613,000 won, the most on the MSCI Asia Pacific Index. Among those that fell, Tokyo Electric Power Co (Tepco), owner of a crippled nuclear facility in Japan fell, as did South Korean companies Hanjin Shipping and Hana Financial Group declined. [9] The MSCI World Index rose 0.5 percent as of 4:08 p.m. in Tokyo, the MSCI Asia Pacific Index jumped 1.3 percent and the Stoxx Europe 600 Index added 0.2 percent. [11]
The benchmark Nikkei stock index in Tokyo finished the morning session Thursday up 0.58 percent. [23]
In Japan, Apple-linked stocks were mostly higher, with chip makers Toshiba up 1.92 percent and Elpida Memory up 3.60 percent. Softbank, the exclusive provider of Apple products in Japan, was down 0.43 percent on profit-taking following its recent gains. [16] The real difficulties for me are valuations ''' which are steep on many healthcare stocks ''' and government intervention if profits seem excessive, for example by capping prices. Atlantis's approach to this is to focus on stocks that have some pricing power ''' for example by being able to differentiate themselves from rivals through their patents or approvals to sell products in more demanding markets such as Europe, the U.S. and Japan. [22] Stock, bond and commodities markets are closed in the U.S. and many markets are also shut in Europe and Asia. [12]
The rupiah rose to 8,610 per dollar, the strongest since April 2004, on inflows to Indonesian stocks and bonds. [4]
The baht advanced 0.2 percent to 29.89 per dollar, according to data compiled by Bloomberg. It touched 29.88 earlier, the strongest level since Dec. 6. [14]
Hedge funds boosted the won to a fresh 32-month high against the dollar, despite dollar buying by authorities and news that the government may reduce ceilings on bank's currency derivatives as early as next month, a move widely seen as aimed at taming the currency's rally. [4] The won matched a 31-month high against the dollar during the local trade on strong demand from hedge funds and exporters, which helped local interbank speculators build up dollar-short positions. [3]
On forex markets the dollar slumped to a record low $1.0771 against the Australian dollar, a 13-year 3.0080 low against the Malaysian ringgit and a 31-month low 1,080.50 to the South Korean won. [16] Overnight, Portuguese 10-year OT spreads hit fresh record highs above +600 basis points. Euro-dollar this morning climbed through last night's $1.4542 New York high, after opening near the morning low of $1.4506. It continued to grind higher through the morning, eventually hitting a morning high of $1.4582, and holding near that as the morning ended, at $1.4565 compared with $1.4510 near the U.S. close. [15] On oil markets New York's main contract, light sweet crude for delivery in June, rose 71 cents to $112.16 a barrel, while Brent North Sea crude for June gained 90 cents to $124.75 in the afternoon. [16] The euro bought $1.4571 and 119.30 yen against $1.4550 and 119.11 yen in New York. [30] The dollar stood at 81.88 yen, slightly stronger from 81.85 yen in New York Thursday. [30]
The Australian and Singapore currencies hit new highs versus the dollar, while the euro advanced to the strongest in 15 months. [11] Switzerland's currency has been strong for decades, and is well known as a safe haven in times of trouble. The reason that Switzerland, and now Singapore, have strong currencies is that these countries live within their means. While the U.S. borrows and spends, these countries earn and save. This is how people get rich, and it's the same for countries. No one got rich by spending money faster than they earned it. [27] "The market's reaction to buy USD/AXJ on the back of S&P;'s downgrade of U.S. sovereign outlook is a knee jerk reaction and should be temporary," said a head of emerging Asian currency trading at a European bank in Singapore. [2] For now, people are interested only in how strong intervention would be," said an Asian bank dealer in Singapore. Another dealer said the government would allow more appreciation as it is focusing on fighting inflation. [4]
NOONAN: There are rumours right now that China might even have a one off revaluation of the yuan. I think finally a lot of Asian countries are realising that its probably in their best interests to allow their currencies to strengthen even though it would hurt their export sectors to some extent. I think the inflation problem is a greater problem for them. [25] Yeah it'll be a rebalancing of global financial markets. SNOWDON: The IMF has advised several Asian nations to let their currencies appreciate and even suggested capital controls be used to limit the inflow of hot money. John Noonan says its possible China, the country most often criticised for its relatively low exchange rate, might make an adjustment this weekend. [25] MARTIN: So now if you're in Korea, Taiwan, Thailand, Malaysia, the Philippines, you don't have to worry so much about the currency going up because the cost of manufactured goods out of China is going up, and that by the way is a another big shock for the global system. That gives room for some of these other countries to let their currencies go up as well. They wont be so worried about that comparative issue out of China. [25]
In China, stocks continued to trudge along, rising steadily amid a bullion global environment. [20] The rally over the previous two days has added $1.1 trillion to global stock market values, according to data compiled by Bloomberg. [11]
A continued bout of risk appetite pushed the Asian stocks higher today, marking second day of advances ahead of the extended weekend. [20] Stocks in the Asian benchmark are valued at 13.2 times estimated earnings on average as of the last close, compared with 13.6 times for the S&P 500 and 11.2 times for the Stoxx 600. [9]
"Overnight pressure on the dollar remained intact as risk-seeking sentiment continued, spurred on by positive earnings in the U.S.," commented analysts at UBS. [15] "U.S. company earnings are clearly helping," said Lee King Fuei, a Singapore-based money manager at Schroders Plc, which oversaw $307.9 billion as of Dec. 31. [11]
Singapore has very low external debt. That means it owes very little to people overseas. Again this is the opposite of the U.S., which owes trillions to places like China, Japan and Saudi Arabia. [27] You are taking on a bit more interest rate risk here than if you simply held cash. That raises the question of whether it would be better if it was a money market fund (one that invests in very short-term debt, giving it very low duration and minimal interest rate). It's possible to get significantly better interest rates by investing in bonds maturing over one to three years. [22] Short duration means a relatively low sensitivity to interest rate movements: the Aberdeen fund's duration at present is 1.6 years. [22]
The Bank of Thailand raised interest rates yesterday, for the sixth time in less than a year, and signaled more increases are likely. [14] Without getting too technical, the sensitivity of a bond's price to changes in interest rates is measured by "duration". This is the weighted average time until the bond's cashflows are paid out to investors. [22]
Investors in Pradas hometown of Milan looking to buy stock in the 98-year-old firm will find themselves 5,800 miles (9335km) away from the action. [5] The currency strengthened to as firm as 1,078.3, the strongest since Aug. 2008, in the afternoon as investors took advantage of the intervention and bought it on the dip. [4] What Marstrand is not telling us is that Singapore's account balance was a lot higher in 2006-7 than it was in 20009-10. That said, these guys never tell you the best ways to play these currency games that will cost you the least money in fees. They pretend to lead you into the investor promise land but never give you a road map. [27]
The ringgit also found support from selling Singapore dollar against the Malaysian currency. The ringgit edged down to 2.4244, but market is targeting its next support at 2.4150. [2] Sorry Singapore dollar is a thumps down and that is why my friends there are now holding anti-Singapore dollar or anti- any fiat currency. [27]
The houses cost 3,00,000 to 10,000,000 Singapore dollars and most people earn between 3,000 to 12,000 Singapore $per month. [27] The Singapore dollar strengthened to as firm as 1.2346 versus the greenback. [4] The Singapore dollar slid on sales from leveraged accounts and interbank speculators. [2]
Keppel Corp. rose 1.6 percent in Singapore after the world's largest oil-rig maker increased profit 7.8 percent last quarter. [11] Singapore Airlines gained 0.84 percent to Sg$14.38 and Keppel Corp rose 1.73 percent to Sg$12.94. Formosa Plastics Corp rose by its 7.0 percent daily limit to Tw$114.0 while Cathay Financial Holding added 3.08 percent to Tw$46.9. [16]
James Hardie rose 4.2 percent to A$6.20 in Sydney after the U.S. Commerce Department said housing starts increased 7.2 percent in March from the previous month. [18] "In the medium term, a downgraded U.S. sovereign outlook bodes well for EM debt as even a 5 percent rechanneling of bond flows from UST to EM governments. [2]
The safe haven has soared as dealers grow concerned over eurozone debt, unrest in the Arab world and global inflation. [16] Inflation data from Australia is suggestive of future rate hikes (propelling the Aussie to new highs) and Gold is making a similar rally on the argument that increases in energy prices will create widespread inflation in global economies. [10]
'''Inflation pressure raises the possibility of a rate increase next month, which supports the ringgit,''' said Suresh Kumar Ramanathan, foreign-exchange strategist at Kuala Lumpur- based CIMB Investment Bank Bhd. [1] Chinese Premier Wen Jiabao and People'''s Bank of China Deputy Governor Hu Xiaolian have said in the past week the yuan'''s flexibility may play a role in countering the fastest inflation in 32 months. [14]
'''The frequent record highs in the reference rate are pushing up appreciation bets in the offshore market,''' said Liu Dongliang, a Shenzhen-based senior analyst at China Merchants Bank Co., the country'''s sixth-largest lender by market value. [1] China fixed the yuan at another record high against the dollar, setting the tone for. [29]
The Australian dollar and gold climbed to records amid concern higher oil prices will spur inflation. [11]
SNOWDON: At more than 107 U.S. cents the Australian dollar is at a post float 29 year high. [25] Rio Tinto Group, the world’s second- biggest mining company by sales, advanced 1.2% to A$84.10 in Sydney. The MSCI Asia Pacific Index lost 0.6% this year through Wednesday, compared with gains of 5.8% by the S&P 500 and 1.2% by the Stoxx Europe 600 Index. [9] More than two shares climbed for each that fell on MSCI's Asia Pacific Index, which rose to a seven-week high. [11] Luxury goods and fashion houses have long looked east for customers as Chinas nouveau riche splurge on designer brands. Now some of these companies are shunning well-established financial centres in Europe and the U.S. and looking to Asia as a place to sell shares, as well as handbags. [5]
Over the next decade, China is expected to become the worlds largest market for luxury goods, worth 74bn euros ($107bn), up from 9bn euros in 2010, according to a recent report by Asia-focused research firm CLSA. Luxury handbags, clothing, watches and jewellery are the most favoured ways for Chinese to display their wealth, the report adds. "If they want to capitalise on high growth in China, they have to be here," says Ben Kwong, chief operating officer at KGI Asia, a local stockbroker. Like their rivals, both Prada and Coach have been expanding rapidly in Asia. [5]
Once you take into account charges, you could end up losing money even if the renminbi rises a bit. It's possible to open bank accounts for some Asian currencies, either through a UK bank or one in Asia. Unless you have a fair amount of money to put to work, this isn't easy for most currencies. [22] There is one fund that's the closest thing on the market to holding a basket of Asian currencies. [22]
I also had a chance to meet Joseph Wat, who runs the Atlantis Asian Fund. This is a regional fund formerly known as the Atlantis Asian Recovery Fund, but had a change of name and mandate in the last couple of years because there simply aren't that many distressed opportunities in Asia these days. [22] Malaysia reported the same day that consumer prices rose 3 percent in March from a year earlier, the most since April 2009. [1] China'''s newly added third-generation mobile phone users rose 27.5 percent in the first quarter compared with a year earlier, according to a statement from the Ministry of Industry and Information Technology. [18]
Among exporters, Sony Corp. declined 1.23 percent to 2,477 yen and Fanuc Corp. fell 0.22 percent to 13,220 yen, while Canon inc. declined 1.4 percent to 3,510 yen after a media report showed that Canon's operating profit for the January-March quarter declined by about 8 percent on the year to about 80 billion yen. [31] Tokyo Electron Ltd., Japan'''s biggest producer of chipmaking equipment, jumped 5 percent to 4,605 yen in Tokyo. [18] Tokyo's Nikkei was 0.48 percent lower by the break, Seoul was flat, Shanghai gained 0.15 percent and Taipei added 0.26 percent. [7]
"We assume the dollar's downside adjustments over the past several days are mostly completed and quiet trading can be expected in Tokyo because (most) other major financial markets in Asia are closed for the holiday," the trader said. [26] "The dollar is broadly under selling pressure," said Tohru Sasaki, strategist at JPMorgan Chase Bank in Tokyo. [16] Markets are also wary of dollar selling from the central bank at the 43.50 support. [2]
The yen touched 81.62 per dollar yesterday, the strongest since March 29. A stronger yen cuts the value of overseas income at Japanese companies when converted into their home currency. [17] The euro is backed by the biggest economy in the world, which in itself makes it a contender. That said, the eurozone surely is in trouble right now, but if European leaders manage to keep the eurozone intact througout this financial crisis, I am pretty sure that the euro will eventually overtake the dollar as the world's primary reserve currency. [27] Rei Li on Apr 23, 9:32 AM said: There is only one currency that can rival the dollar in the immediate future: the euro. [27]
PPI rose 1.2% quarter-on-quarter in the first quarter, accelerating from a 0.1% rise in the final quarter of 2010, taking the annual rise to 2.9%, the Australian Bureau of Statistics said. Aussie-dollar broke above $1.0700 for the first time ever today, and follow-through buying triggered a spike to its morning high of $1.0772, the pair's best level since the Australian currency was freely floated in the 1980s. The currency is now trading in uncharted territory and there are no technical targets above this, Imre Speizer, senior currency strategist at Westpac said. This is the highest it has been (post-float) and it would be foolhardy to predict the next high level using any form of science, he said. [15] The ringgit rose 0.6 percent to 3.0045 in Kuala Lumpur and reached 3.0034, the highest level since October 1997. [1] In Taipei Hon Hai, the parent of Foxconn, which assembles Apple products, rose 1.4 percent. [16]
Samsung Electronics, an Apple rival, gained 1.3%, advancing for a third day in Seoul and leading technology shares higher. [9] Marketing tool The reasoning is two-fold: Selling shares in Hong Kong acts as a great marketing tool, as well as an effective way to raise funds for expansion. [5] Many markets including Australia ]] Australia, Hong Kong Jakarta, Singapore, Manila and India ]] India were closed for public holidays. [31]
Elsewhere, the British pound slipped to $1.6516 from $1.6517, while the dollar is flat at 81.90 Japanese yen. [12] Market activities were thin, with Asian players off for the holiday," said a dealer at a major Japanese bank. The Japanese finance minister reiterated his resolve to ensure fiscal discipline after the government approved a four-trillion yen extra budget for reconstruction after the March 11 earthquake and tsunami. [30]
Finance Minister Yoon Jeung Hyun said yesterday the government will step up monitoring of financial markets as global capital flows into South Korea may see more volatility with U.S. quantitative easing nearing an end. [1] On the downside, 1.6470 is seen as the next likely target level for the U.S. currency. [8]
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. [6] Higher stocks aided by strong corporate results are expected to allure more funds to emerging Asia, analysts said. [3]
Among oil producers, Woodside Petroleum gained 2.7% to A$47.86 in Sydney, while Bow Energy, an oil and gas explorer, surged 6.6% to 96.5 Australian cents, the third-biggest gain on the S&P/ASX 200 Index. [9] Hana Financial lost 2.8% to €44,700, after Goldman Sachs sold 7mn shares in Hana Financial for 301bn won ($279mn) before the market opened yesterday, said Lee Jung Dae, a Hana spokesman. [9]
SOURCES
1. Asian Currencies Strengthen as Regional Central Banks May Increase Rates - Bloomberg
2. Won, rupee fall on profit-taking; exporters limit losses
3. Singapore dollar at record high
4. S$ at record high; Seoul buys $2bn to slow surging Won
5. BBC News - Luxury brands seek Asian stock market listings
6. GLOBAL MARKETS-US dollar at 2-1/2-yr low, gold near record high | Energy & Oil | Reuters
7. Asian stocks mixed in holiday-hit trade
8. Dollar Slumps To New Record Low Against Franc On Equities Rally
9. Gulf Times ''' Qatar'''s top-selling English daily newspaper - Finance & Business
10. Apple Beats Analyst Estimates Again and Lifts Risk Sentiment; Aussie Makes another Record High after Strong PPI Numbers Released | Benzinga.com
11. Stocks Advance on Apple Earnings; Aussie, Gold Climb to Records
12. Dollar Little Changed in Light Holiday Trading - ABC News
13. Asia Central Banks Intervene As Currencies Climb - WSJ.com
14. Asian Currencies Gain on Interest-Rate Outlook, Rally in Regional Stocks - Bloomberg
15. ASIA FX: US Dollar Languishes as Sentiment Fuels Risk-Taking | iMarketNews.com
16. AFP: Asian shares rise after more solid US earnings
17. Asia Stocks Fall on Japanese Shares; South Korea Little Changed
18. Asian Stocks Rise on U.S. Housing Data, Better Company Earnings - Bloomberg
19. UPDATE: Asian Shares End Mostly Up; Technology, Commodity Stocks Gain - WSJ.com
20. Asian stocks have a very good Thursday
21. Asian Shares End Mostly Up; Technology, Commodity Stocks Gain - WSJ.com
22. A simple way to invest in Asian currencies - MoneyWeek
23. Dollar falls on upbeat stock markets
24. UPDATE: Asian Shares Mostly Higher; Apple Results Buoy Regional Tech Sector - WSJ.com
25. Radio Australia:Connect Asia:Story:Calls for Asian currencies to appreciate more freely
26. Asian stocks edge down in holiday-hit trade
27. Where To Find The '''Anti-Dollar''' (Hint: It'''s Not Gold)
28. Chinese Face Reading, Coming to a Spa Near You - China Real Time Report - WSJ
29. Asia Central Banks Intervene Again As Currencies Extend Rally - WSJ.com
30. Dollar range-bond in holiday-thinned Asian trade
31. Asian stocks slightly lower in holiday trade - International Business Times
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