Thursday, April 25 2024 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
PHNOM PENH – A nine-year-old boy living near Siam Reap, Cambodia’s most popular tourist destination, is the 10th person to die in an outbreak of bird flu in Cambodia – the previous most serious outbreak of the virus was in 2011, when eight people died.
BANGKOK - Thailand’s Q2 GDP growth has eased to 2.8% y/y, down from 5.4% in Q1, coming in below expectations of 3.3%. On a q/q sa basis, GDP came in at -0.3%, from a revised -1.7% (-2.2% prior) contraction in Q1. ANZ Bank says it now sees significant downward risks to its 2013 growth forecast of 5.0%.
HONG KONG - China's current economic slowdown is likely to contribute to weakening credit profiles for many of the country's major companies, according to Standard & Poor's annual survey on China's top corporates. The report examines the credit profiles of 151 major Chinese companies from a pool of the largest domestic bond issuers and biggest revenue-earners, as well as companies that are representative of their industries. Three-quarters of these are State-owned enterprises (SOEs), a decline from 88% in the 2012 sample.
SEOUL – South Korea’s President, Park Geun-hye, has extended an olive branch to Pyongyang, proposing that North and South Korea resume reunions for families separated between the two Koreas, from September. “I want to reduce the pain of separated families,” Park said in an address at the 68th anniversary of National Liberation Day. “I hope North Korea can open its mind and allow family reunions.”
TAIPEI – Taiwan’s Formosa Plastics Group (FPG) has agreed to invest US$1.15 billion in a joint venture owned 88% by Australia-based Fortescue Metals Group (FMG), the world's fourth largest iron ore producer, and 12% by China’s Shanghai Baosteel Group Corp. Formosa Plastics will spend US$123 million to take a 31% stake in the JV and will provide US$527 million in capital expenditure for the first stage of development.
BEIJING – Following a series of contamination scandals, China’s Ministry of Commerce has unveiled plans to sell milk powder at pharmaceutical stores from October. It will seek to establish a unified purchasing, distribution and sales system, and will be completed in three phrases, from 2013-2015. Purchase and distribution will be conducted by the Ministry and terminal sales will be done solely through vendor machines to guarantee the quality of the products.
HONG KONG – Government figures show that Hong Kong Q2 GDP expanded by 3.3% y/y versus 2.9% in Q1, slightly above market expectations. Sequentially, GDP grew 0.8% q/q sa following the 0.2% gain in Q1. Growth was mainly driven by strong private consumption.
TOKYO - In its monthly economic report for August, Japan’s Cabinet has expressed confidence that the economy no longer facing chronic price declines. CPI inflation turned positive in June for the first time in a year, rising to 0.2% y/y. Despite a slightly weaker-than-expected Q2 GDP outturn (2.6% saar), the Cabinet judged that the economy is, “picking up steadily and shows some movements on the way to recovery”, evidenced by rising exports, private consumption and industrial production. The Cabinet also expressed confidence that improving corporate earnings will help boost business investment, which contracted in Q2.
NEW DELHI - The Reserve Bank of India has introduced new measures to stem capital outflows, including tighter restrictions on overseas direct investments (to 100% of companies’ net worth, down from 400% previously), capping outward remittances by individuals to US$75,000 per year from US$200,000 previously, and prohibiting outflows on acquisition of overseas property. The measures come after the Government measures announced just days ago to reduce the current account deficit through hikes in import duties and fuel price reforms, along with measures to boost capital inflows.
NEW DELHI - India’s closely-watched wholesale price inflation has jumped in July to a higher-than-expected 5.8% y/y, led by upward energy price adjustments, rising food prices and the impact of a weakening rupee. Reassuringly, core inflation stayed benign at 2.3% y/y (from 2.1% y/y in June). The jump in headline WPI inflation, which reached a five-month high, was influenced by the import pass-through of a near 10% rupee depreciation during May-July, accentuated by a hike in regulated diesel prices (3% m/m) and a surge in prices of fruit and vegetables (10.5% m/m) amid temporary supply distortions from heavy rains.
PARIS – The world economy has weakened slightly this quarter, mainly due to declining optimism in Asia and Latin America, while North America shows signs of continuing recovery, according to the latest World Economic Survey published by the International Chamber of Commerce (ICC) and the Munich-based economic research institute Ifo.
BEIJING – China’s central government is considering plans to upgrade regional co-operation between the provinces of Beijing, Tianjin and Hebei to build a trilateral economic sphere in the Bohai Bay area. A draft for co-operation was completed in 2006, but eventually shelved. Since President Xi Jinping urged the three cities to push forward with co-operation in May, local governments have submitted proposals to restart the initiative.
BEIJING – China’s e-commerce sector raked in revenue of RMB4.98 trillion in the first half, up 45.3% on-year, according to data from the Ministry of Industry and Information Technology (MIIT). Consumption of information products and services jumped 20.7% on-year to RMB2.07 trillion and the output of smartphones surged 120% to 214 million units, paralleling a rise in mobile e-commerce.
BEIJING - A National Development and Reform Commission (NDRC) official has said China will expand city rail networks to 3,000 km by 2015 and to 6,000 km by 2020, with combined investment of RMB 3-4 trillion. Local bureaus in more than 10 cities have granted approvals to build or extend local urban rail networks in recent months, and 36 cities have approved plans to build subways. In 2013 alone, investment in China’s rail network will expand by RMB40 billion from last year to RMB220 billion.
TAIPEI - The Taiwanese Government will increase its spending on public construction projects by 10% in 2014 to help stimulate economic growth, according to a budget plan unveiled on Monday. In 2014, Government expenditure will reach NT$1.9407 trillion, up NT$33.1 billion, or 1.7%, from this year. Revenue, meanwhile, is projected to decrease marginally by NT$2.5 billion, or 0.1%, to NT$1.7308 trillion. The NT$209.9 billion shortfall, along with NT$64 billion for principal repayment on debt, will be covered by new borrowing and the issuance of Government bonds (ATI).
SINGAPORE – The Ministry of Trade and Industry has revised its 2013 full-year GDP growth forecast to 2½%-3½% from 1%-3% previously on expectations of improving external demand, following a surprise lift in GDP of 3.8% y/y for the second quarter, up from a preliminary reading of 3.7%. The better-than-expected outturn was due to an upward revision in services output.