Wednesday, April 24 2024 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
NEW DELHI - The challenge for India’s incoming Modi Government is to regain fiscal prudence in a sustainable way, says ratings agency Standard & Poor’s, pointing to implementation of a goods and services tax as a measure that could help stabilise Government revenues and potentially improve the country's growth prospects by promoting inter-state transactions and the general efficiency of the economy.
BEIJING - Home sales in China fell 18% in April amid tighter credit, with value declining to RMB418 billion from RMB509 billion in March, according to National Statistics Bureau data. The value of total sales from January to April fell 9.9% to RMB1.53 trillion from a year earlier, dragging down China’s overall growth. To combat the decline, at least six smaller Chinese cities have been relaxing local curbs on speculative and investment-driven home buying since the end of April.
BEIJING - Chinese consumer spending on dining, hotels and entertainment has surged more than 60% in the past three years because of increased overseas travel, based on a survey by Chinese credit card provider UnionPay. The data reflects the shifting trends of Chinese consumer behaviour and favoured touring patterns.
NEW DELHI – The landslide win by the BJP-led National Democratic Alliance (NDA) in India’s national election, marks the end of a series of Coalition governments in India stretching back to 1989. Markets welcomed the incoming Prime Minister Narendra Modi, with the Sensex up 6% on the day and the rupee at a 10-month high of 58.5 against the US dollar.
BANGKOK - In a surprising break from standard practice, the Central Intellectual Property and International Trade Court (IP&IT Court) has sentenced a recidivist infringer to imprisonment for offences under the Thai Trademark Act. Lawyers Baker & McKenzie say the case has attracted significant attention among IP rights holders, who have long criticised the customary practice of suspending imprisonment sentences against intellectual property offenders.
JAKARTA - The ANZ-Roy Morgan Indonesian Consumer Confidence index increased to 152.2 (up 1.6pts m/m) in April – and is now 3.4pts lower than it was a year ago in April 2013 (155.6). This month’s small rise was primarily driven by increasing confidence about the Indonesian economy over the next 12 months and an improving perception that it is now a good time to buy major household items. Political uncertainty is apparent in some components of the index.
HONG KONG – Citibank says it now has 7.4 million clients across 14 markets in Asia who have signed up for digital banking services, including online, mobile phones and other digital channels. “Consumer preferences are changing and a generational shift in behaviour is driving consumers to new digital channels,” says Jonathan Larsen, Head of Consumer Banking for Citi in Asia Pacific.
BEIJING - Following four drafts and a two-year debate among policymakers, academics and activists, China’s Standing Committee of the National People’s Congress has passed amendments to the 1989 Environmental Protection Law, to be effective from January 1 2015.
NEW DELHI - With a projection of 272 seats on average for the BJP-led NDA Coalition, exit polls on Monday evening were pointing to the possibility of an even stronger Coalition government coming into power in India than in 2009, when the current government, the Congress-led UPA coalition won 262 seats, up from 218 in 2004). The number needed for a simple majority is 272.
HONG KONG – Data released by China today shows that industrial production rose 8.7% y/y in April, down slightly from 8.8% in March and lower than the market consensus of 8.9%. Electricity production growth slowed further to 4.4% y/y, down from 6.2% in the prior month, while fixed asset investment moderated to 17.3% y/y in January-April, the lowest level since 2002, compared with 17.6% for Q1 2013.
BEIJING - Comments by President Xi Jingping are being seen as another indication that Chinese leaders will avoid large-scale stimulus, preferring to stick to limited measures, such as tax breaks, a speeding up of infrastructure development and social housing investment to boost the economy. Xi said China should adapt to the new norm of its economic growth and be cool-minded amid a slowdown in the economy.
SYDNEY - Concerns about an emerging market crisis are waning as foreign portfolio investors begin to invest in these markets again, according to the latest issue of World Risk Developments, published by EFIC, Australia’s Export Finance and Insurance Corporation.
HONG KONG – In its latest economic update, BBVA Bank says that while global growth should accelerate in 2014, downside risks are still present from QE tapering - and turmoil in emerging markets. “We have slightly lowered our global growth projections to 3.4% in 2014 and to 3.8% in 2015 on account of recent out-turns,” BBVA says.
SINGAPORE - Standard & Poor's has held its current sovereign credit ratings on Thailand (foreign currency BBB+/Stable/A-2; local currency A-/Stable/A-2; ASEAN scale axAA/axA-1) following the dismissal of caretaker Prime Minister Yingluck Shinawatra by Thailand's Constitutional Court on the charge of "abuse of power", saying that a possible conviction was part of a number of scenarios already incorporated into its ratings – “reflecting our expectations of protracted and potentially increasing political instability”.
SINGAPORE - Standard & Poor's has raised its long-term sovereign credit ratings on the Philippines to 'BBB' from 'BBB-', and its short-term rating to 'A-2' from 'A-3', with the outlook stable. S&P also lifted its ASEAN regional scale rating for the Philippines to 'axA/axA-2', from 'axA-/axA-2', and its transfer and convertibility assessment to 'BBB+' from 'BBB'.
SINGAPORE – The dry conditions of the El- Ninõ weather phenomenon is widely expected to return this year with a vengeance, possibly as early as July, according to various climate models, says ANZ Bank, warning that the prospect raises concerns of a repeat of higher commodity and food prices due to weak monsoon rain.