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China consumer prices fall, stoking threat of deflation

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SMF reports a drop in China's consumer prices in February further darkened the country's economic outlook and reinforced worries of deflationary pressures.

China's CPI fell 1.6% from a year earlier in February, the National Bureau of Statistics said it was the first year-to-year decline in the consumer-price index in more than six years.

Many economists said the headline CPI may only fall for a relatively limited period, since the decline mainly reflects much higher prices in the first half of last year.

The risk is that sliding prices could spur consumers to delay purchases in the hope of clinching better bargains in future, hampering Beijing's efforts to yank the world's third largest economy out of its most severe growth slump in more than a decade.

Prepare yourself for the "New Economy"

Posted: 3/10/2009 7:36:28 AM by StockMarketFunding | with 0 comments

China government oil reserve full, shipper says

SMF reports China has filled all four of its state-owned emergency oil reserve tanks to the brim and should now invest in oil tankers to add more to inventories while oil prices are low, a senior industry executive said in a rare acknowledgement of Beijing's secretive oil inventories.

Coupled with data last week showing a one-third rise in commercial crude oil stockpiles last year, the admission suggests that a large share of of China's oil import growth last year was pumped directly into storage, and could be relied upon quickly to soften any demand recovery or if prices should rise.

It also backs up speculation that the world's No. 2 energy user has been making good use of oil's $100 price fall to boost supplies while demand falters in an unfolding economic crisis. China Shipping (Group) Co President Li Shaode told Reuters that he had proposed that the government use some of its foreign exchange reserves on floating oil storage.

"The four onshore reserve bases have been fully filled, so we need to invest urgently in floating storage," Li said on the sidelines of the country's annual parliament.

Prepare yourself for the "New Economy"

Posted: 3/9/2009 3:12:12 PM by StockMarketFunding | with 0 comments

Japan posts record current account deficit

Japan posts record current account deficit in January, 1st deficit in 13 years

Japan posted a record current account deficit in January, plunging into the red for the first time in 13 years due to plummeting demand for Japanese exports and a deepening global downturn, the Ministry of Finance said Monday.

The deficit stood at a record 172.8 billion yen ($1.8 billion) in January, far bigger than the previous deficit record of 25.6 billion yen in January 1996, the ministry said. The current account is Japan's broadest measure of trade in goods and services with the rest of the world. "We incurred the current account deficit due to a plunge in exports.

Our exports to key regions, including the United States, Europe and Asia, were all down sharply due to the deteriorating global economy," said ministry official Michito Yamagami. Exports in January dropped a record 46.3 percent from a year earlier to 3.28 trillion yen, marking the fourth consecutive month of year-on-year declines.

Imports fell 31.7 percent to 4.13 trillion yen, resulting in a trade deficit of 844.4 billion yen in January. Japan's exports to the United States, the world's largest economy, dropped 52.9 percent, while Asia-bound shipments fell 46.7 percent from a year earlier, the ministry said. Japan's exports to the European Union declined 47.4 percent.

"The current account deficit and the dismal exports data clearly reflected weakening demand for Japanese goods amid a global recession," said Hiroshi Watanabe, an economist at Daiwa Institute of Research.

"Consumers in Asia, Europe, the Middle East and the United States are not buying pricey Japanese goods such as cars and electronics goods," Watanabe said.

"Japan's export-driven economy is really engulfed by waves of the global economic crisis." Among exported products, Japan's vehicle shipments nose-dived 66.1 percent with shipments of auto parts down 51.9 percent year-on-year in January.

Exports of semiconductor and electronics parts products dropped 52.8 percent. The current account is calculated by determining the difference between Japan's income from foreign sources against payments on foreign obligations and excludes net capital investment.

Prepare yourself for the "New Economy"

Posted: 3/9/2009 8:12:16 AM by StockMarketFunding | with 0 comments

SMF reports China stocks surge 6.1 pct on data, policy pledge

SMF reports that China's main stock index surged over 6% on Wednesday, posting its biggest gain since November, after the government said it would expand its fiscal spending plan and data supported hopes for an early economic recovery.

The Shanghai Composite Index rocketed 6.12% in heavy trade to close at 2,198.107 points, just off the day's high of 2,201.727. Sectors rose sharply across the board.

China will increase spending in areas such as infrastructure and manufacturing on top of the 4 trln yuan ($585 bln) stimulus package that it announced in November, a senior economic planning official said on Wednesday.

This fuelled hopes that Premier Wen Jiabao would make a major announcement on fresh stimulus steps in an address to parliament on Thursday. Analysts have been speculating that the package could be expanded to 6 trln yuan or conceivably even 8-10 trln yuan.

Prepare yourself for the "New Economy"

Posted: 3/4/2009 7:51:32 AM by StockMarketFunding | with 0 comments

SMF Pro Traders Nikkei gains 0.9%; Hang Sang rallies for 2.5%

Japan's Nikkei gained 61.24 points (0.9%). Reuters reports that Japanese benchmark index also received support from bargain-hunting by an array of investors when it neared a 26-year low just under 7,000.

Fast Retailing gained to become the top positive contributor to the Nikkei 225 on solid February sales at its Uniqlo casual clothing chain, though Honda Motor and other exporters slid despite a weaker yen on growing worry about demand as the global recession bites deeper.

A senior Chinese economic planning official said on Wednesday China will increase spending in areas such as manufacturing and infrastructure, on top of the 4 trillion yuan ($584.7 billion) stimulus package unveiled in November.

Hong Kong's Hang Sang rallied for 297.27 points (2.5%). Reuters reports that mkt rallied with Chinese finance and resources stocks leading the surge after Beijing said it would expand its fiscal spending plan, fuelling hopes for an early economic recovery.

Hong Kong Exchanges & Clearing also aided the rise with shares jumping as much as 9.5% to HK$61.2 after Asia's largest listed bourse operator posted a smaller-than expected 44% fall in fourth quarter profit.

The stock ended at HK$59.60, still up 6.62% from the previous close... The Sensex gained a modest 19 points to close at 8446.

Prepare yourself for the "New Economy"

Posted: 3/4/2009 7:19:20 AM by StockMarketFunding | with 0 comments

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Japan posts record current account deficit in January, 1st deficit in 13 years

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