China, desperate to kick start their economy and improve civil harmony has quietly removed trade restrictions imposed in late 2020 on Australian coal imports. Earlier this year Chinese authorities gave four major importers permission to resume purchases of Australian coal, which began shipping in January. Bloomberg reports that China’s ports and customs offices have been told to allow all domestic companies to import Australian coal, according to people familiar with the decision, who asked not to be identified because the … Continue reading “China Removes Remaining Barriers from Unofficial Trade War on Australian Coal”
Bank Negara Malaysia Leaves Interest Rates Unchanged in Wait-and-See Approach
The central bank of Malaysia, Bank Negara Malaysia surprised markets by leaving its key overnight policy rate steady at 2.75% in the March meeting of 2023 on Thursday as expected. Bank Negara said the stance of monetary policy remained accommodative and supportive of economic growth. Policymakers said further normalization to the degree of monetary policy accommodation would be informed by the evolving conditions and their implications to the domestic inflation and growth outlook. Malaysia’s economy has recovered strongly from a pandemic-induced … Continue reading “Bank Negara Malaysia Leaves Interest Rates Unchanged in Wait-and-See Approach”
Reserve Bank of India Hike Rates Sixth Time in a Row to 6.50%
The Reserve Bank of India on Wednesday raised its key repo rate by 25 bps to 6.50% during its February meeting, the sixth-rate hike in a row. Headline Consumer Price Inflation (CPI) remains under the RBI’s upper tolerance limit of 6 per cent. There has been some moderation in food prices with annual inflation easing unexpectedly easing to 5.72% in December of 2022 from 5.88% in November, the lowest reading since December of 2021. With the US dollar pulling back … Continue reading “Reserve Bank of India Hike Rates Sixth Time in a Row to 6.50%”
Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.
The ratings agency S&P Global Ratings reaffirmed its AAA long-term sovereign credit rating and A-1+ short-term rating for Australia. S&P issued a note saying Australia should avoid a recession amid record low unemployment and elevated commodity prices, even as the economy slows this year amid higher interest rates. The RBA is expected to announce another 25 basis point increase in the official cash rate after its board meeting next Tuesday. S&P said Australia’s ratings were supported by “strong institutions, which … Continue reading “Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.”
What’s Next for Adani Group After Short Seller Hindenburg Report Wipes Out Over $50 Billion in Market Value
Indian stock markets were rattled last week by the attack on the Adani Group from US activist investor and short-seller Hindenburg Research’s report into the Indian conglomerate caused Adani’s shares to fall spectacularly. Five of the seven listed Adani Group companies ended the day after 16% to 20% lower, and the other two were halted at the maximum 5% permitted by India’s exchanges for their stocks. Indian stocks had been at all-time highs just over a month ago, the market’s … Continue reading “What’s Next for Adani Group After Short Seller Hindenburg Report Wipes Out Over $50 Billion in Market Value”
2023 Year of the Rabbit, What Does it Mean for You and Financial Markets
The lunar new year typically falls on the second new moon after the winter solstice and is celebrated in countries across East and Southeast Asia, including China, Korea, Japan, Vietnam, Singapore, and Taiwan. The year of the rabbit in the Chinese zodiac occurs every 12 years and the next one begins Sunday January 22, 2023. Lunar New Year is also known as the Chinese New Year or the Spring Festival when Asian communities around the world this year will say … Continue reading “2023 Year of the Rabbit, What Does it Mean for You and Financial Markets”
Bank Negara Malaysia Leaves Interest Rates Unchanged to Assess Previous Hikes Impact
The central bank of Malaysia, Bank Negara Malaysia surprised markets by leaving its key overnight policy rate steady at 2.75% in the first meeting of 2023 on Thursday. Markets had forecast a 25bps increase. Bank Negara said it wants to assess the impact of the previous four rate hikes. Policymakers noted that the current policy stance remains accommodative and supportive of economic growth and further normalization would depend on the evolving conditions and their implications to the domestic inflation and growth … Continue reading “Bank Negara Malaysia Leaves Interest Rates Unchanged to Assess Previous Hikes Impact”
Bank Indonesia Raised Rates Another 25 basis points to Highest Level Since 2009
Bank Indonesia increased interest rates by 25 bps during the first meeting of 2023, a sixth consecutive hike, on Thursday as it sought to tame inflation and strengthen the rupiah exchange rate. The benchmark 7-day reverse repurchase rate now stands at 5.75%, the deposit facility at 5.00% and the lending facility at 6.50%, their highest level since 2009 and in line with market forecasts. So far since August last year the central bank has lifted rates by 225bps. Indonesia’s annual inflation rate … Continue reading “Bank Indonesia Raised Rates Another 25 basis points to Highest Level Since 2009”
Semiconductors Lift South Korean ICT Exports to All Time High in 2022
South Korea shipments of information and communications technology (ICT) products in 2022 reached an all-time high of USD 233.3 billion, up 2.5 percent from 2021. ICT exports achieved a trade surplus of $80.9 billion and make up 34.1% of Korea’s total annual exports. Imports went up 12.9% to $152.5 billion. ICT exports to most major regions expanded, however shipments to South Korea’s largest trading partner, China (including Hong Kong) shrank 4.9% to $102.3 billion as zero-COVID lockdowns and halted production lines … Continue reading “Semiconductors Lift South Korean ICT Exports to All Time High in 2022”
China’s Reopening to Add ~1% to Australian Growth Through Tourism and Education – JPM
Australia’s economy will get a big boost from the end to China’s zero-Covid policy over the next two years JPMorgan said in a note Saturday. JPMorgan’s chief investment strategist Tom Kennedy said “The largest potential upside from reopening itself sits within the services sector given China is the largest consumer of Australian tourism and education exports.” JPM sees a full recovery in Australia’s tourism adding 0.5% to its gross domestic product and the return of international students from China will … Continue reading “China’s Reopening to Add ~1% to Australian Growth Through Tourism and Education – JPM”