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South Korea announces stimulus package after disappointing Q2 GDP

July 24, 2014

SEOUL – South Korea’s Q2 GDP grew 3.6% y/y, lower than both the 3.9% reported in Q1 and market expectations of 3.7%. Private consumption contracted 0.3% q/q in Q2, compared with 0.2% growth in Q1, suggesting that the Sewol ferry accident has dragged domestic consumption. Overall investment declined by 0.1% q/q (Q1: -0.9%), led by a 4.2% decline in intellectual property products.

China’s Xi calls for respect of all countries’ “cyberspace sovereignty”

July 17, 2014

BEIJING - While attending the just-concluded sixth BRICS summit in Brazil, Xi Jinping gave a 30-minute speech which stressed the importance of all countries’ cyberspace sovereignty, claiming that “there are no double standards in the information sector, and each country has the right to preserve its own information security”. His remarks come in the wake of recent allegations against the US of spying on multiple countries, including BRICS members China and Brazil.

China marginally decreases rare earth export quotas

July 18, 2014

BEIJING – China’s Ministry of Commerce has announced a second batch of rare earth export quotas for 2014 but shows no signs of expanding availability despite increasing global demand for the minerals. The export quota includes 13,691 metric tonnes for light rare earths, down 130 tonnes from last year, and 1,809 tonnes of medium and heavy rare earths, up 130 tonnes from last year. Overall, the total export quota is 30, 610 tonnes, down 389 tonnes from last year.

China’s Q2 GDP improves on mini-stimulus – infrastructure spending key to recovery: HSBC

July 16, 2014

HONG KONG – China’s second quarter GDP growth numbers have surprised on the upside, up to 7.5% from 7.4% in the first quarter. Sequential growth rebounded to 8% sa from 6% on an annualised basis, reflecting the impact of cumulative easing measures so far this year. Infrastructure investment and related manufacturing sectors were the key drivers.

Indonesian election neutral for Sovereign Rating: S&P

July 11, 2014

SINGAPORE - The outcome of Indonesia's close-run Presidential election will have little impact on the sovereign credit rating (BB+/Stable/B; axBBB+/axA-2), according to ratings agency Standard & Poor's. "We expect reform progress to be slow no matter who is elected.” S&P says. “Any boost to policy-making and growth prospects is likely to be insufficient to strengthen the sovereign credit rating."

Taiwan’s June exports hit US$26.8 billion: 5% growth target in sight

July 11, 2014

TAIPEI - Taiwan’s exports are on track to grow 5% this year, following expanded electronics shipment in June, a month in which total exports hit US$26.8 billion, up 1.2% from the year before, on the back of continuing high demand for electronics, basic metal products and machinery. The Ministry of Finance said second quarter exports, at US$80.07 billion, were the highest in three years.

Modi Budget detailed, pragmatic – but misses on infrastructure: BBVA

July 11, 2014

NEW DELHI – The Modi Government’s first Budget -  for FY15 (year ending March 2015) - is distinct in its unprecedented detail on the to-do list for reviving the Indian economy, says BBVA Bank. Marked by efforts to improve the quality of India’s economic growth, the Budget emphasis was as much on education, health and skill development as on economic and administrative initiatives  - but it fell short of going the extra mile in reaffirming investor confidence on the new Administration’s ability to swallow the bitter pill of tough reforms, BBVA says.

No Big Bang, but India’s Budget sets positive tone: HSBC

July 11, 2014

HONG KONG – In an assessment of the first Budget delivered by India's new Finance Minister, Arun Jaitley's, HSBC describes the overall tone as positive, although there was no “Big Bang’. There was always a limit to what the Minister could deliver after only a few short weeks in office, HSBC said, adding that investors may need to rein in their expectations of how quickly the economy can be turned around. HSBC’s summary -

China’s trade data continues rebound, pressure for RMB appreciation

July 10, 2014

BEIJING - China’s export growth picked up to 7.2% y/y in June, lower than market expectations but up from 7.0% in the prior month, suggesting that external demand continues to improve. Imports grew 5.5% y/y versus -1.6% in May, showing that the effects of a commodity financing crackdown have gradually faded. Meanwhile, ANZ Bank reports that commodity prices led by copper have rebounded significantly in the past few weeks, suggesting that domestic demand has been improving.

Recovery for Indian banks will be gradual, says S&P

July 9, 2014

SINGAPORE – The revival of India's banking industry is likely to be gradual, according to Standard & Poor’s, which is tipping only moderate loan growth because, it says, the investment cycle will take time to revive. “We believe a revival in the capital expenditure cycle is some time away because companies have to first recoup returns on their earlier investments,” S&P says.

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