Asia Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. http://www.brecorder.com/markets/fxmm/asia.html Sun, 23 Nov 2014 23:55:26 +0000 SRA Framework 2.0 en-gb Yen rebound lifts regional peers; Asia FX down for week http://www.brecorder.com/markets/fxmm/asia/206252-yen-rebound-lifts-regional-peers;-asia-fx-down-for-week.html http://www.brecorder.com/markets/fxmm/asia/206252-yen-rebound-lifts-regional-peers;-asia-fx-down-for-week.html imageSINGAPORE: Emerging Asian currencies rose on Friday as the yen rebounded after Japan's Finance Minister Taro Aso warned against the currency's recent swift fall, although most regional units were set for another week of losses.

The yen gained as Aso earlier described the currency's weakening as "too rapid," but ruled out intervention to halt the slide.

The rebound caused investors to cover short positions in emerging Asian currencies.

Still, most regional units were poised to post weekly losses, led by the South Korean won, as the yen hit a seven-year low against the dollar on Thursday.

The won ended the week down 1.2 percent against the dollar, its fourth week of declines, according to Thomson Reuters data. That was the longest streak of weekly losses since May 2013.

South Korea's foreign exchange authorities were suspected of intervening to check the won's strength against the yen on concerns it would erode the competitiveness of exporters against their Japanese rivals.

The Taiwan dollar fell 0.8 percent with the island's exporters also seen vulnerable to weakness in the yen and the won. The Indian rupee has eased 0.2 percent so far this week.

Malaysia's ringgit has slid 0.1 percent, while the Philippine peso closed the week down 0.1 percent.

The Indonesian rupiah stood firm in the face of falls in regional peers, having risen 0.7 percent.

Indonesia's President Joko Widodo on Monday announced a long-awaited decision to raise fuel prices and free up funds to rejuvenate Southeast Asia's biggest economy. The central bank on Tuesday hiked interest rates to temper an expected upsurge in inflation following the fuel price hike.

China's yuan has gained 0.1 percent on expectations of inflows due to a new link between the Hong Kong and Shanghai stock exchanges.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Fri, 21 Nov 2014 15:58:02 +0000
Yuan may weaken early next year as central bank steps back http://www.brecorder.com/markets/fxmm/asia/206231-yuan-may-weaken-early-next-year-as-central-bank-steps-back.html http://www.brecorder.com/markets/fxmm/asia/206231-yuan-may-weaken-early-next-year-as-central-bank-steps-back.html imageSHANGHAI/BEIJING: China's central bank has taken a hands-off approach to the yuan in the last six months, possibly setting the currency up to depreciate again next year.

Regulators may allow market forces to guide the yuan lower in the first quarter of 2015 to keep it competitive as other Asian currencies slide versus the greenback on expectations the US Federal Reserve will begin tightening policy next year.

The People's Bank of China (PBOC) has phased out daily operations in the market since May, after it engineered a 3.4 percent depreciation of the yuan early this year to deter speculators betting on non-stop gains.

That depreciation dampened investor interest in the Chinese currency - previously seen as a one-way bet - and pushed companies to keep more dollars.

Thus the central bank has some leeway to reduce trading intervention, traders say.

A 10-percent rally in the US Dollar Index in the second half of this year, followed by broad drops in Asian currencies - led by the Japanese yen on the back of the Bank of Japan's expanded stimulus drive last month - have made the yuan even less attractive.

For now, it is being supported by China's strong trade surpluses and is expected to remain firm for the rest of this year as exports are robust through the Christmas season.

But that is likely to change early next year.

"China typically recorded some months of trade deficits in the first quarter in recent years," said Huang Yi, head of forex trading at Guangfa Bank in Shanghai. "Less dollar supply in the domestic market next quarter, plus the global backdrop, will exert downward pressure on yuan if the PBOC stays on the sidelines," he said.

PBOC SITS IDLE

The central bank has tolerated a 2 percent rebound in the yuan since May amid strong trade surpluses, traders say.

At the same time, the growth of the PBOC's forex assets has ground to a virtual halt, with decreases in June, July and September, central bank data shows.

That means it has largely stopped trying to influence the yuan's value in the market, leaving dollar supply and demand to play the key role in determining the exchange rate, traders say.

Meanwhile, Chinese banks have only settled small amounts of forex income - essentially swapping dollars for yuan - despite the record trade surpluses bringing in a massive wave of dollars, data from China's forex regulator shows.

"Chinese firms increasingly tend to keep dollars as assets, balancing that with more yuan liabilities," said a senior dealer at a Chinese state-owned bank in Shanghai.

"The PBOC would be more than happy to see the trend as it has long hoped the yuan could move in either direction, easing the pressure for it to intervene to help decide its value."

At the start of 2014, the market widely expected that the yuan would appreciate another 3 percent like it did last year.

After months of gains in the yuan, the PBOC will be more than willing to see the currency stage another round of depreciation, so much the better if it is at the hands of global forex movements rather than its own intervention, traders say.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Fri, 21 Nov 2014 14:43:35 +0000
South Korean won bounces from 15 month low, shares edge higher http://www.brecorder.com/markets/fxmm/asia/206224-south-korean-won-bounces-from-15-month-low-shares-edge-higher.html http://www.brecorder.com/markets/fxmm/asia/206224-south-korean-won-bounces-from-15-month-low-shares-edge-higher.html imageSEOUL: The South Korean won rebounded from a 15-month trough on Friday, as the dollar took a breather, especially against the yen which jumped on a warning by the Japanese finance minister against rapid currency moves.

The won was quoted at 1,110.1 to the dollar as of 0245 GMT, compared to Thursday's close of 1,115.1.

The won's uptick was driven by the yen's rebound earlier on Friday, after Japanese Finance Minister Taro Aso expressed concerns about the yen's rapid fall - a side effect of the massive monetary easing campaign undertaken by the Bank of Japan.

"Profit-taking and exporter demand for settlements are limiting the won's fall for now, but it will face more downward pressure with the yen/dollar rate expected to test the 120 level soon," said Ma Ju-ok, an economist at Kiwoom Securities.

"If the weak yen trend persists, the financial authorities could scale up their intervention in the market," especially if it pushes the won much higher versus the Japanese currency, Ma added.

Authorities are concerned a weak yen could erode South Korean exporters' competitive edge versus their Japanese rivals.

The yen has hit a string of fresh 6-year lows against the won in November, with the yen/won cross-rate dipping below 9.5

South Korean shares edged higher on the day as risk appetite were underpinned by upbeat US economic data, while exporters also gained some reprieve on the yen's bounce.

The Korea Composite Stock Price Index (KOSPI) was up 0.25 percent at 1,963.01 points as of 0245 GMT.

Hyundai Heavy Industries rallied 6 percent after KCC Corp said it would buy a 300 billion won ($270.32 million US dollar) stake in the shipbuilder.

December futures on three-year treasury bonds ticked 1 basis point higher to trade at 108.08.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Fri, 21 Nov 2014 14:32:31 +0000
Yen jumps after Japan fin min warns on rapid fall http://www.brecorder.com/markets/fxmm/asia/206223-yen-jumps-after-japan-fin-min-warns-on-rapid-fall.html http://www.brecorder.com/markets/fxmm/asia/206223-yen-jumps-after-japan-fin-min-warns-on-rapid-fall.html

imageTOKYO: The yen rose sharply on Friday after Japanese Finance Minister Taro Aso said the currency's fall over the past week was too rapid, in one of the strongest warnings against a weak yen since Japan started its aggressive monetary stimulus two years ago.

The dollar rallied to 117.355 per dollar from around 118.00 yen before his comments, extending it recovery from a seven-year low of 118.98 struck on Thursday.

The yen last traded at 117.70 per dollar.

The yen also made ground against the euro, recovering to 147.72 yen per euro, coming back from a six-year low of 149.12 hit on Thursday. Aso also said rapid currency moves, whether up or down, were undesirable, speaking to reporters after a cabinet meeting on Friday.

His comments triggered profit-taking on yen-selling positions that had built up after the Bank of Japan's easing late last month and Prime Minister Shinzo Abe's decision to delay a planned tax hike and call a snap election.

The dollar has climbed almost 10 yen since the Bank of Japan sprang its surprise easing in late October.

Many market players, however, see a rebound in the yen as a short-term correction, and do not expect a change in Abe's policy to stimulate growth through massive monetary easing.

"Although the market reacted to Mr. Aso's comments, I don't think it would have lasting impact on the yen," said Kosuke Hanao, head of FX at HSBC in Tokyo. "Market players had predicted that some kind of correction was inevitable any way before Japan's long weekend and the US Thanksgiving week." Monday is a labour day public holiday in Japan.

The market mood remains bullish on the dollar also given the outperformance of the US economy. Figures out of the United States on Thursday was generally upbeat, led by a stunning jump in the Philadelphia Fed survey of manufacturing which soared to its highest since 1993.

Inflation also surprised on the upside, with the core consumer price index nudging up to 1.8 percent for the year.

That should be a welcome development for many at the Federal Reserve who have been worried that inflation could stay too low for too long.

In contrast, data out of Europe was mostly weak with manufacturing surveys missing forecasts across the continent.

The divergence in economic fortunes saw the euro ease back to $1.2565 and away from the week's high of $1.2599.

The data cupboard is bare for Friday but European Central Bank chief Mario Draghi and Bundesbank head Jens Weidmann are both due to speak at the European Banking Congress in Frankfurt.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Fri, 21 Nov 2014 14:31:35 +0000
Yen recovers from multi-year lows http://www.brecorder.com/markets/fxmm/asia/206154-yen-recovers-from-multi-year-lows.html http://www.brecorder.com/markets/fxmm/asia/206154-yen-recovers-from-multi-year-lows.html imageTOKYO: The yen clawed back some losses in Asia after a steep slide over the past week left it at multi-year lows against the dollar and euro, but analysts said another fall could be in store.

In Tokyo, the greenback slipped to 117.85 yen, against 118.22 yen in New York, where it almost broke the 119 yen level for the first time since August 2007.

The euro bought 147.23 yen compared with 148.25 yen, a six-year high, while it weakened to $1.2492 against $1.2540.

Comments from Japanese finance minister Taro Aso appeared to briefly cap the yen's losses after he told a regular news briefing that the pace of the decline in the past week has been "too fast".

"He is only saying that the yen's rapid fall is not a welcome thing. But it does not mean that he wants to cap the move at this level," said Yuji Saito, foreign exchange director at Credit Agricole in Tokyo.

"The (downward) trend will remain the same."

Prime Minister Shinzo Abe dissolved the lower house of parliament for an election next month. The poll comes after data showed Japan's economy sank into recession in the July-September quarter following a sales tax hike that hit consumer spending.

The news also led him to delay another sales tax hike planned for next year.

Tokyo's Nikkei stock index hit a seven-year high last week after the Bank of Japan expanded its monetary easing programme on October 31, sending the yen into a freefall.

The dollar also won support from upbeat US data.

A regional manufacturing index from the Federal Reserve Bank of Philadelphia surged unexpectedly, while the Conference Board's Leading Economic Index, an amalgamation of several key economic indicators, also improved.

Also, US existing-home sales gained in October for the second straight month, while the Labor Department said US consumer prices were unchanged in October from September, keeping the annual inflation rate at a modest 1.7 percent.

The figures are the latest showing the country is on a strong recovery track, despite weakness in the Chinese, Japanese and eurozone economies.

The dollar was mostly lower against other Asia-Pacific currencies.

It weakened to 45.06 Philippine pesos from 45.13 pesos, to 32.79 Thai baht from to 32.87 baht, to 12,138.90 Indonesian rupiah from 12,172.00 rupiah, to 61.84 Indian rupees from 62.13 rupees, and to Sg$1.2988 from Sg$1.3029.

The dollar rose to 1,113.76 South Korean won from 1,113.08 on Thursday, and to Tw$30.92 from Tw$30.91.

The Australian dollar firmed to 86.15 US cents from 85.89 cents, while the Chinese yuan eased to 19.25 yen from 19.32 yen.

Copyright AFP (Agence France-Presse), 2014

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parvezjabri@yahoo.com (Parvez Jabri) Asia Fri, 21 Nov 2014 09:44:08 +0000
Yen recovers from multi-year lows http://www.brecorder.com/markets/fxmm/asia/206121-yen-recovers-from-multi-year-lows.html http://www.brecorder.com/markets/fxmm/asia/206121-yen-recovers-from-multi-year-lows.html imageTOKYO: The yen clawed back some losses in Asia after a steep slide over the past week left it at multi-year lows against the dollar and euro, but analysts said another fall could be in store.

In Tokyo midday trading, the greenback was at 117.76 yen, compared with 118.22 yen in New York, where it almost broke the 119 yen level for the first time since August 2007.

The euro bought 147.81 yen compared with 148.25 yen, a six-year high.

The single currency was also at $1.2553 against $1.2540.

Comments from Japanese finance minister Taro Aso appeared to briefly cap the yen's losses after he told a regular news briefing that the pace of the decline in the past week has been "too fast".

"He is only saying that the yen's rapid fall is not a welcome thing. But it does not mean that he wants to cap the move at this level," said Yuji Saito, foreign exchange director at Credit Agricole in Tokyo.

"The (downward) trend will remain the same."

Prime Minister Shinzo Abe is set to dissolve the lower house of parliament later in the day for an election next month. The poll comes after data showed Japan's economy sank into recession in July-September following a sales tax hike that hit consumer spending.

The news also led him to delay another sales tax hike planned for next year.

Tokyo's Nikkei stock index hit a seven-year high last week after the Bank of Japan expanded its monetary easing programme on October 31, sending the yen into a freefall.

The dollar also won support from upbeat US data.

A regional manufacturing index from the Federal Reserve Bank of Philadelphia surged unexpectedly, while the Conference Board's Leading Economic Index, an amalgamation of several key economic indicators, also improved.

Also, US existing-home sales gained in October for the second straight month, while the Labor Department said US consumer prices were unchanged in October from September, keeping the annual inflation rate at a modest 1.7 percent.

The figures are the latest showing the country is on a strong recovery track, despite weakness in the Chinese, Japanese and eurozone economies.

Copyright AFP (Agence France-Presse), 2014

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parvezjabri@yahoo.com (Parvez Jabri) Asia Fri, 21 Nov 2014 04:44:17 +0000
Sliding yen, weak China PMI hit Asia FX; Sing dollar up with intervention spotted http://www.brecorder.com/markets/fxmm/asia/206020-sliding-yen-weak-china-pmi-hit-asia-fx;-sing-dollar-up-with-intervention-spotted.html http://www.brecorder.com/markets/fxmm/asia/206020-sliding-yen-weak-china-pmi-hit-asia-fx;-sing-dollar-up-with-intervention-spotted.html imageSINGAPORE: Most emerging Asian currencies fell on Thursday with the South Korean won near a 15-month low as the yen lost ground and a private survey of China's manufacturing sector increased worries about a slowdown in the world's second-largest economy.

The Singapore dollar rose as the central bank was suspected by traders of supporting the currency.

The won kept underperforming as it is seen more sensitive to the yen's weakness, given the competition between South Korea and Japan in exports markets.

Investors built up the largest short positions in the won since the 2008 global financial crisis in the last two weeks, a Reuters poll showed.

Taiwan's dollar ended local trade down 0.5 percent at 31.015 per US dollar, its weakest since October 2010.

The Indonesian rupiah fell as investors took profits from its gains after the central bank raised interest rates and the government increased fuel price earlier this week.

The yen hit a seven-year low against the dollar and a six-year trough versus the euro as speculators rushed to carry trades funded by super-cheap liquidity from the Bank of Japan.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Asia Thu, 20 Nov 2014 12:39:31 +0000
Sri Lankan rupee forwards fall on importer dollar demand http://www.brecorder.com/markets/fxmm/asia/205988-sri-lankan-rupee-forwards-fall-on-importer-dollar-demand.html http://www.brecorder.com/markets/fxmm/asia/205988-sri-lankan-rupee-forwards-fall-on-importer-dollar-demand.html imageCOLOMBO: Sri Lankan rupee forwards ended weaker on Thursday due to dollar demand from importers, but moral suasion by the central bank limited its fall, dealers said.

The local currency is under pressure as imports continue to rise on stable foreign exchange and low interest rates, they said.

The rupee will likely remain weak due to rising seasonal imports, at least through November and then start to inch up in December on remittances, they added.

The spot currency ended at 131.00/30 per dollar compared with Wednesday's close of 131.00/10.

Dealers said the central bank defended the local currency at 131.00. Central bank officials were not immediately available for comment.

Three-day forwards, or spot-next, ended at 131.25/30 per dollar compared with Wednesday's close of 131.15/25. Dealers said the central bank lowered its desired level for the three-day forwards by 10 cents to 131.25.

They said exporters and banks were reluctant to sell dollars on expectation the currency would weaken further.

Overseas investors sold a net 39.54 billion rupees ($302 million) worth of government securities in the eight weeks through Nov. 12, data from the central bank showed.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Asia Thu, 20 Nov 2014 12:05:30 +0000
Indian rupee recoups losses to end nearly flat http://www.brecorder.com/markets/fxmm/asia/205981-indian-rupee-recoups-losses-to-end-nearly-flat.html http://www.brecorder.com/markets/fxmm/asia/205981-indian-rupee-recoups-losses-to-end-nearly-flat.html imageMUMBAI: The Indian rupee ended nearly flat on Thursday after a fall to a nine-month low had sparked mild intervention from the central bank, as emerging market currencies were hit by a weak reading in a private survey of China's manufacturing.

The China flash HSBC/Markit manufacturing purchasing managers' index (PMI) fell to a six-month low in November, with output contracting for the first time in six months.

The falls in the rupee are raising the prospect of higher imported inflation, although the slump in global crude prices is tempering some of those concerns.

Analysts also note the rupee could prove sturdier than other emerging market economies given confidence about a recovery in the country's economy.

Earlier in the day, traders said the central bank was likely selling dollars through state-owned banks to stem the rupee's fall.

"We might see some retracement towards 61.90 (per dollar) and then some bounce again," said Hemal Doshi, a currency strategist at Geojit Comtrade Ltd.

"Exporters in India got 62 plus levels after a long time so they also sold today, and these dollar sales will keep coming around 62.20 levels," Doshi said.

The partially convertible rupee closed at 61.94/95 per dollar versus its previous close of 61.96/97, after earlier touching a low of 62.22, its weakest level since Feb. 20.

Besides falling emerging market currencies, the rupee was also pressured by state-owned banks spotted buying dollars as India is soon due to pay a third tranche of $400 million to Iran, allowing Tehran to recover part of its overseas frozen oil revenues.

The falls in the rupee spurred state-run banks to sell dollars on behalf of the Reserve Bank of India in spot markets, and heavier interventions in forward markets, according to traders.

In the offshore non-deliverable forwards, the one-month contract was at 62.26/36, while the three-month was at 62.83/93.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Asia Thu, 20 Nov 2014 11:58:09 +0000
Yen hits fresh lows on BoJ easing speculation http://www.brecorder.com/markets/fxmm/asia/205890-yen-hits-fresh-lows-on-boj-easing-speculation.html http://www.brecorder.com/markets/fxmm/asia/205890-yen-hits-fresh-lows-on-boj-easing-speculation.html imageTOKYO: The yen drifted lower in Asia on Thursday, hitting multi-year lows against the dollar and euro as investors bet on further Bank of Japan monetary easing measures.

The dollar rose to 118.15 yen in midday Tokyo trade, from 118.01 yen in New York and hovering around its highest level since August 2007.

The euro bought 148.24 yen against 148.11 yen in US trade, the highest level since October 2008.

The common European currency slipped to $1.2536 against $1.2551 in New York.

Wrapping up a two-day policy meeting on Wednesday, the Bank of Japan (BoJ) kept its upbeat view that the economy was recovering, despite data this week showing the country had slipped into recession.

But the central bank trimmed its inflation expectations, saying that they "appear to be rising on the whole from a somewhat longer-term perspective".

Many economists believe the BoJ will need to launch further easing measures on top of a surprise asset-purchase plan expansion last month that triggered a fresh round of yen selling.

"The BoJ may be prepared to become even more aggressive to achieve its inflation target," Credit Agricole said in a note.

Policymakers have set a goal of reaching 2.0 percent inflation as part of Tokyo's wider bid to conquer years of falling prices and turn around the deflation-plagued economy.

In the US, minutes from the Federal Reserve's October 28-29 meeting showed policymakers were confident enough in the economy to bring an end to its vast bond-buying stimulus programme, a plus for the dollar.

However, they also made clear there was little thought of departing from its current policy of keeping interest rates at the current zero level well into 2015. Most analysts forecast initial hikes around the middle of next year.

"Hedge funds appear to be gearing up for more yen-shorting, which could take the dollar to at least the 120 yen mark in a short time," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

Copyright AFP (Agence France-Presse), 2014

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parvezjabri@yahoo.com (Parvez Jabri) Asia Thu, 20 Nov 2014 04:26:56 +0000