Thursday, January 17 2019 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
HONG KONG - In a new research note, French banking group Natixis says China's economic slowdown is more likely to be a result of domestic issues (such as lower returns on capital) than on external shocks. It says that while the market tends to attribute slower growth to the US-China trade war, the ironic reality is that, in the third quarter, China's exports continued to gain ground, even into the U.S. market.
TAIPEI - Taiwan improved two spots to 13th among 190 economies worldwide and fifth in the Asia-Pacific, according to the World Bank's Doing Business 2019 report. Scoring 80.9 out of 100, up 0.24 of a point from the previous edition, Taiwan finished ahead of regional neighbours Malaysia, 15th; Australia, 18th; and Japan, 39th, but trailed New Zealand, first; Singapore, second; Hong Kong, fourth; and South Korea, fifth.
JAKARTA - Indonesia's growth slowed slightly from 5.27% y/y in Q2 to 5.17% in Q3, broadly in line with expectations. Investment was a key driver of growth, with its pace of expansion picking up from 5.86% y/y in Q2 to 6.96% in Q3. Government consumption growth also accelerated during the same period.
SEOUL - South and North Korea on November 1 officially ceased all hostile acts against each other on land, sea and air in accordance with their bilateral military agreement signed on September. The South Korean Government described the move as a milestone in removing the threat of war on the Korean Peninsula.
SEOUL - Higher export volumess of high-value added goods along with exports from new industries have puit South Korea on track to achieve a record high of US$600 billion in exports this year.
TAIPEI - The external tailwind for Taiwan's economic growth is fading, with exports decelerating to 3.1% YoY in Q3 2018, a big fall from 11.2% last quarter. In addition, imports are increasing as Taiwanese companies push for investment, especially in machinery.
COLOMBO - Escalation of political uncertainty in Sri Lanka following dismissal of Prime Minister Ranil Wickremesinghe on October 26, heightens the likelihood of the political environment becoming more fractious in the coming weeks, especially if no clear majority is established in Parliament.
SINGAPORE - Rated Indian companies are relatively well-positioned to withstand the stress in India's debt capital
markets since a major default, says S&P Global Ratings in a report published today.
HONG KONG - In a research note, ANZ Bank says all the numbers from China's PMI release today confirm a broad-based decline in economic activity. Apart from a drop in the non-manufacturing (-1.0) and manufacturing (-0.6) PMI in October, all sub-indices, including output (-1.0), new export orders (-1.1) and orders-on-hand (-0.9) also retreated.
SEOUL - The South Korean Government is describing President Moon Jae-in's meeting with Pope Francis this month as the most noteworthy event in his nine-day European itinerary. Moon delivered an invitation from North Korean leader, Kim Jong Un, to the Pope.
HANOI - Vietnam's long-awaited Decree providing detailed guidance on compulsory social insurance applicable to foreign employees working in Vietnam will take effect from December 1. Contributions and entitlements related to each benefit regime will come into effect on different dates.
JAKARTA - Bank Indonesia (BI) today kept its 7-day reverse repo rate unchanged at 5.75%, as anticipated, but the pause does not mark the end of BI's tightening cycle, according to ANZ Bank.
PERTH - A Sydney company which has invested around US$120 million in two new nickel pig iron production lines in Indonesia, and is Australia's newest listed nickel company, says it expects the new plant to start commissioning by end of June next year.
HONG KONG - The world's longest sea crossing, the 55 km Hong Kong-Zhuhai-Macau bridge, has been opened today by China's President, Xi Jinping, in a eremony at Zhuhai. The bridge connects the eastern and western sides of the Pearl River Delta. (ATI).
BEIJING - China's State newsagency, Xinhua, says the Foreign Ministry has refuted allegations that China uses "debt diplomacy" to expand its influence globally, and has urged the United States to correctly view China's co-operation with developing countries.
HONG KONG - September economic indicators for China reported today show Q3 GDP growth slowing to 6.5% y/y from 6.7% y/y in the previous quarter suggesting that the Chinese economy further moderated amid escalation of the trade war with the US and domestic deleveraging.