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Korean exports surprise to the upside in October

November 5, 2013

SEOUL - Korea’s October exports swung back to growth on a year-on-year basis in October (7.3% y/y vs consensus: 2.3% y/y), compared to a decline of 1.5% y/y the previous month. Exports to the US and Europe saw significant improvements. Despite the strong export reading in October, however, BBVA Bank says it believes the growth recovery will remain fragile as the effects of fiscal stimulus implemented earlier this year wear off (Q3 GDP growth of 1.1% q/q, s.a.

China Construction Bank to acquire majority stake in Brazil's BIC

November 5, 2013

BEIJING - China Construction Bank (CCB) is to acquire 72% of shares in Brazilian bank, Banco Industrial e Comercial SA (BIC) for US$726 million, subject to regulatory approval. CCB has been very cautious in expanding overseas, and has not completed an offshore acquisitions for seven years, since it bought Hong Kong-based BA Asia Ltd for US$1.25 billion. In contrast, ICBC has been purchasing small banks in Southeast Asia, the US, and South America to expand its branch network, while Bank of China has opened more than 100 branches globally.

Home prices in China increase by 10.69% over 12 months

November 5, 2013

BEIJING - Prices of newly built houses in 100 Chinese cities have increased by 10.69% from a year ago, with an average price of RMB10,685 per sq m. The rapid rise in prices indicates a failure of local government efforts to control prices. The Beijing municipal government sought to keep prices steady in 2013, but in the first three quarters alone, prices were up by an aggregate 24.39%.

South Korea commits KRW8.5 trillion to future ICT economy

November 5, 2013

SEOUL – The South Korean Government is to invest KRW8.5 trillion over five years into ICT research and development as it confirms a new mid- to long-term ICT strategy described as an ‘ICT WAVE’. Korea’s Ministry of Science, ICT and Future Planning (MSIP) describes WAVE as an acronym for ‘World’s best ICT, Activating an R&D ecology, Vitalising industry and Enhancing life’.

Indonesia’s inflation moderates, trade deficit returns

November 2, 2013

JAKARTA - Inflation in Indonesia eased further in October and ANZ Bank says it now expects Bank Indonesia to hold current interest rates for some time. But ANZ said figures showing the trade balance returning to a deficit in September - driven by a rebound in imports amid sustained weakness in export growth – suggests that domestic demand is not collapsing.

China’s official PMI at 18 month high, HSBC PMI at 7 month high

November 2, 2013

BEIJING – China’s official Purchasing Managers' Index (PMI) rose for a fourth consecutive month in October to an 18-month high of 51.4, while the HSBC China index jumped to a seven month high of 50.9. A reading above 50 indicates an expansion in the manufacturing sector while a reading below 50 indicates a contraction. A gauge of export orders was above 50 for a third month, while a new orders index fell to 52.5 from 52.8, which was the highest since April 2012.

Australia’s RDNS signs off on Seniors Care JV in China

October 30, 2013

MELBOURNE – Australia’s Royal District Nursing Service (RDNS) has partnered with China’s Zhongshan College  in Jiangsu Province to develop clinical care and support for the elderly. RDNS CEO Stephen Muggleton says the JV will develop and operate an aged care facility that will include 1,500 integrated care places and a 400 bed hospital which links with the college’s education faculty.

Korea industrial output disappoints, but Japan a bright spot

October 31, 2013

SEOUL - After registering better-than-expected Q3 GDP growth (1.1% q/q s.a.; 3.3% y/y), growth momentum in South Korea appears to have slowed in September, with a disappointing industrial production outturn of -2.1% m/m s.a. (prior: +1.6%). BBVA Bank says that while part of the decline is due to strikes at car factories and fewer working days due to holidays, the outturn coincides with a moderating trend in China’s September activity data and is a reminder of the headwinds facing Asian growth momentum.

Hong Kong, ASEAN to start formal talks on FTA

October 30, 2013

HONG KONG – The HKSAR will start formal negotiations with ASEAN early next year for a free trade agreement (FTA) with the 10-member Southeast Asian body following discussions at last week’s Hong Kong-ASEAN Business Partnership Symposium. Gregory So, Hong Kong Secretary for Commerce and Economic Development, said an FTA would facilitate the flow of goods, services and investment, while also providing a platform for regular dialogue between ASEAN and Hong Kong. He said ASEAN is now Hong Kong’s second-largest goods trading partner and fourth-largest service trading partner (ATI).

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