Dec. 21 (Bloomberg) -- Bank of Thailand Governor Tarisa Watanagase defended measures to control the appreciation of the baht that wiped $23 billion from the value of Thai stocks, and said the rules will be removed once the currency stabilizes.

``As soon as the volatility reduces, we will lift the requirement,'' Tarisa said in an interview in Bangkok today. ``This is temporary.'' The baht fell by the most in more than three years.

Tarisa announced currency controls on Dec. 18 to stem a 16 percent rise in the baht. The measures prompted investors to dump Thai stocks and forced Finance Minister Pridiyathorn Devakula who preceded Tarisa as governor until October, to intervene by exempting equities from the rules, spurring a rebound in the benchmark SET Index.

``When it became a blunder, Pridiyathorn came to the rescue,'' said Thitinan Ponsudhirak, a political scientist at Chulalongkorn University in Bangkok. ``This puts Tarisa in a tight spot. The stock market lobby will want some blood.''

The finance ministry was informed the central bank would issue ``a measure on the baht, but I didn't look into the details,'' Pridiyathorn told a press conference on Dec. 19. The stock market slump was ``a side effect of the central bank's measure, but we have fixed it already.'' Tarisa said today the finance minister helped plan the steps.

Thailand's military on Sept. 19 ousted Prime Minister Thaksin Shinawatra's caretaker government in the nation's 18th coup since 1932, citing corruption and cronyism. Pridiyathorn was picked to run the Southeast Asian nation's economic policies.

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DEC. 21 (Bloomberg) -- Japan's export growth unexpectedly accelerated in November, easing concern that the expansion of the world's second-largest economy is cooling. Imports slowed, reflecting a decline in oil prices.

Exports rose 12.1 percent, helping the trade surplus widen to 915.9 billion yen ($7.7 billion) from 594.4 billion yen a year earlier, the Ministry of Finance said today in Tokyo. Imports gained 7.5 percent, down from 17.5 percent in October.

The yen's decline against the dollar and euro has helped reduce the effects of slower overseas demand, bolstering exports. Shipments abroad grew at the slowest pace in six months in October, causing concern that the economy would stall amid sluggish consumer spending at home.

``There is no doubt that the yen's weakness remains an engine for Japan's exports,'' said Yoshimasa Maruyama, an economist at BNP Paribas. ``Today's numbers confirm Japan's exports maintain more momentum than we had expected.''

The yen traded at 118.44 yen per dollar at 4:42 p.m. in Tokyo from 118.38 before the report. The yield on the benchmark 10-year bond fell half a basis point to 1.605 percent. Exporters including Toyota Motor Corp. and Honda Motor Co. gained, helping the Nikkei 225 Stock Average rise 0.2 percent to 17,052.20.

Exports climbed more than the 9.1 percent median estimate of 14 economists surveyed by Bloomberg News. Imports rose less than economists' 10.1 percent expectation.
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Dec. 23 (Bloomberg) -- Japan's 10-year bonds posted their biggest weekly gain since August as central bank Governor Toshihiko Fukui kept interest rates on hold for a fifth month and said consumer prices and spending were ``somewhat weak.''

Benchmark bonds yesterday extended gains after a Federal Reserve Bank of Philadelphia report showed U.S. regional manufacturing contracted the most in three years, renewing concerns Japanese exports may not grow fast enough to boost economic growth. Exports account for a 10th of the economy.

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TOKYO (AP) -- The Japanese government kept its assessment of the economy unchanged on Monday, saying sluggish consumption was hurting the country's economic recovery, as the central bank's governor remained cautious about an early interest rate hike.

Rising production and capital investment propelled the world's second-largest economy to a record 59th consecutive month of recovery -- nearly five years -- since January 2002, according to a Cabinet Office report released Monday.

But the report, which looks at a variety of economic factors besides gross domestic product, warned of weakness in consumer spending, saying sluggish growth in wages was keeping spending flat.

Domestic demand, which accounts for more than half the economy, undercut growth in the July-September quarter, forcing the government to downgrade its economic outlook earlier this month.

The Cabinet Office left its overall assessment of the economy unchanged from the previous month after downgrading it last month for the first time in almost two years.

Corporate profit and investment are on the rise, while industrial production is increasing moderately and exports remain flat, it noted.

The latest report echoes concerns that although Japan has emerged from a decade-long economic stagnation -- with robust exports contributing to record profits at Japanese companies -- those profits have not driven up wages and spending.

The Japanese economy's recent growth is also less stellar than the double-digit growth it experienced from the late 1960s. The economy grew at an annualized pace of 0.8 percent in the third quarter.

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Dec. 27 (Bloomberg) -- Japan's retail sales rose less than expected, signaling consumer spending may not pick up enough for the central bank to raise interest rates early next year.

Receipts at retailers edged up a seasonally adjusted 0.1 percent in November from a month earlier, the trade ministry said today, less than the 0.6 percent median estimate of six economists surveyed by Bloomberg News. From a year earlier, sales unexpectedly slipped 0.1 percent, ending three months of gains.

Bank of Japan Governor Toshihiko Fukui on Dec. 25 reiterated that recent consumption and inflation numbers were ``somewhat weak'' and the bank should view more data before raising interest rates. Today's report may not allay his concern about consumer spending, which accounts for more than half of the economy.

``If the weakness in consumption is related to temporary factors like the weather or the timing of new product releases, well then, no problem,'' Tomoko Fujii, a senior economist and strategist at Bank of America N.A. in Tokyo, said before the report. ``But if the consumption data show a further deterioration, the bank will have trouble justifying a rate increase in January or even February.''

The yen traded at 118.92 per dollar at 10:54 a.m. in Tokyo, compared with 119.13 before the report was published.

Economists predicted year-on-year sales to climb 0.5 percent. Receipts at large retailers fell 0.7 percent from a year earlier, the trade ministry said.
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Dec. 27 (Bloomberg) -- Asian stocks rose to the highest in more than seven months. Toyota Motor Corp. and Sony Corp. led gains after the dollar strengthened against the yen, increasing the value of exporters' overseas sales.

``The yen is likely to stay weak,'' said Mitsushige Akino, who oversees $468 million in assts at Ichiyoshi Investment Management Co. in Tokyo. ``Investors have expectations that exporters may raise their profit forecasts in January.''

Electronics producers including LG.Philips LCD Co. gained after prices of crude oil dropped, suggesting energy costs won't crimp consumer spending. Newcrest Mining Ltd. advanced after prices of gold surged the most in a week.

The Morgan Stanley Capital International Asia-Pacific Index added 0.6 percent to 139.70 as of 10:35 a.m. in Tokyo, headed for the highest close since May 12. Japan's Nikkei 225 Stock Average climbed 0.5 percent to 17,247.85, while the broader Topix index gained 0.4 percent, with a measure of automakers posting the biggest gain.

Stock indexes rose elsewhere in the region, except in South Korea. The Kospi index lost 0.9 percent, led by steelmakers including Posco, on concern costs will increase after two Japanese rivals said they will pay 9.5 percent more to buy iron ore from a supplier.

U.S. stocks rose yesterday. The Standard & Poor's 500 Index gaining 0.4 percent, aided by a rally in raw-material stocks after gold climbed the most in a week.
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Dec. 31 (Bloomberg) -- Singapore's economic growth accelerated to 7.7 percent this year due to ``robust'' performances in manufacturing and services, Prime Minister Lee Hsien Loong said in his New Year's Eve message today.

The increase in gross domestic product in 2006 was within the trade ministry's Nov. 20 forecast range of 7.5 percent to 8 percent and less than the median forecast of a 7.9 percent gain in a Bloomberg News survey of 10 economists. The $118 billion economy expanded 6.4 percent in 2005.

Lee, the son of Singapore's founding father Lee Kuan Yew, is trying to develop the city-state as a regional financial services and tourism hub as manufacturers shift jobs to lower- cost countries like China. Growth may ease next year as a global slowdown damps demand for the electronics that account for more than one-third of the $118 billion economy's industrial output.

``The services sector appears resilient, but there is still a question mark over growth in the technology sector,'' said Song Seng Wun, an economist at CIMB-GK Research in Singapore. ``We have seen a weak performance in the electronics sector over the past few months. Unless we see upside surprises in electronics and drugs output in 2007, growth is not likely to beat 2006.''

Lee reiterated the government's forecast for the economy to grow between 4 percent and 6 percent in 2007. The trade ministry will release its fourth-quarter growth estimate, based largely on data for October and November, at 8 a.m. on Jan. 3. Revised figures based on more complete data will be released in February.
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Jan. 2 (Bloomberg) -- Asian stocks rose the most in almost two weeks, led by exporters Samsung Electronics Co. and Hon Hai Precision Industry Co. after Wal-Mart Stores Inc. reported higher sales and U.S. consumers spent more online.

``U.S. spending is still looking firm,'' said Kim Seong Ki, who oversees about $1.9 billion in equities at SH Asset Management Co. in Seoul. ``Positive sentiment toward tech companies, such as semiconductor makers, should continue.''

The Morgan Stanley Capital International Asia-Pacific excluding Japan Index rose on the first trading day of the year, gaining 1.3 percent to a record 402.33 at 5:23 p.m. in Hong Kong. Japan was one of seven markets closed for holidays. Benchmarks in Australia, Hong Kong and Indonesia all set new highs.

China Mobile Ltd. posted the biggest jump in two months on speculation it will sell shares in Shanghai for the first time, possibly at a premium to the company's Hong Kong-listed stock. BHP Billiton, the world's largest mining company, and Newcrest Mining Ltd. advanced after gold prices rose.

The Philippine market was the only one to drop in the region today, dragging the nation's key stock index from a nine- year high. The MSCI measure, which rose for a fourth straight year in 2006, gained the most since Dec. 20. Stock markets in China, Malaysia, New Zealand, Pakistan, Singapore and Thailand were all closed.

Samsung Electronics, South Korea's largest exporter, added 2 percent to 625,000 won. Hong Kong's Yue Yuen Industrial Holdings Ltd., which makes sports shoes for brands such as Nike Inc., climbed 1.8 percent to HK$25.15.
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BANGKOK, Thailand (AP) -- Thai stocks tumbled 3 percent Wednesday as a string of bombings over New Year's in Bangkok further shook investor confidence in the Asian nation.

In its first trading day of the year, the Stock Exchange of Thailand's benchmark SET Index fell as much as 3.8 percent before recovering some to close at 659.25, down 3 percent from Friday. The market was closed Monday and Tuesday.

Other Asian markets were not affected, with Hong Kong's benchmark index hitting a record high.

Several bombings in Bangkok on New Year's Eve and New Year's Day killed three people and wounded nearly 40. The attacks, which authorities blamed on politicians and renegade army officers loyal to ousted Prime Minister Thaksin Shinawatra, also have raised concerns about Thailand's stability, economy and thriving tourism industry.

The bombings are another blow to the Thai stock market, which was roiled the week before Christmas after the central bank imposed capital controls on Dec. 19 to stem the baht's surge, sending the market tumbling nearly 15 percent. The measure was quickly amended to exclude foreign stock investments, causing the market to bounce back 11 percent the following day.
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Jan. 5 (Bloomberg) -- Asian stocks fell for a third day, the longest slide in seven weeks, as prices of commodities tumbled and a stronger yen hurt Japanese exporters.

PetroChina Co. and BHP Billiton dropped after crude oil plummeted to an 18-month low and copper and gold prices slumped. Toyota Motor Corp. and Canon Inc. declined.

``It will take time for metal and crude prices to rebound from the current decline, making it difficult to bet on commodity shares,'' said Takeshi Yamaguchi, who looks after $674 million at Sumitomo Mitsui Asset Management Co. in Tokyo. ``The yen's gain, especially against the euro, triggered today's drop among exporter shares.''

Samsung Electronics Co. and Hon Hai Precision Industry Co. fell after Motorola Inc., the world's second-largest mobile- phone maker, said fourth-quarter sales were less than expected.

The Morgan Stanley Capital International Asia Pacific Index lost 0.5 percent to 140.08 at 5:25 p.m. in Tokyo, having slipped 0.5 percent over the past two days. It last fell for three consecutive days in the period ended Nov. 20.

Japan's Nikkei 225 Stock Average dropped 1.5 percent to 17,091.59, the biggest slide in seven weeks. Stock markets in China, Hong Kong, Indonesia, Malaysia, New Zealand and Singapore all advanced. QBE Insurance Group Ltd., Australia's largest property and casualty insurer, surged after announcing its biggest-ever takeover.

For the holiday-shortened week, the MSCI index was set for a 0.3 percent slide. It rallied 6.5 percent in the previous seven weeks. Energy and materials stocks are the two worst performers among the 10 industry groups that make up the regional benchmark.
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Jan. 8 (Bloomberg) -- Singapore Aircraft Leasing Enterprise, owned by Bank of China Ltd., will buy 40 planes from Airbus SAS and Boeing Co., as it expands its fleet to meet demand from low- cost carriers and other airlines.

Asia's biggest plane lessor ordered 20 planes from the A320 family, Airbus said in a statement today. The company also exercised options for 20 Boeing 737-800s, Boeing said in a separate release. The combined orders are worth as much as $3 billion at list prices.

Singapore Aircraft is expanding its fleet as customers such as AirAsia Bhd., Southeast Asia's largest budget airline, start flying new routes. The Asia-Pacific region will need 7,900 planes over the next 20 years, 29 percent of the global demand for aircraft during the period, according to Boeing.

``The pie is definitely growing for the low-cost segment,'' said Peter Drolet, an analyst at UOB Kay Hian Pte in Hong Kong. ``You've now got a very tight small aircraft segment with AirAsia and all the low-cost carriers that want to get their hands on single-aisle aircraft.''

The orders are the first announced from Asia this year for both Airbus and Boeing. Last year, Boeing booked a total of 1,044 orders for commercial airplanes. Airbus had 635 orders at the end of November.

Singapore Aircraft plans to expand the number of planes it owns and manages to as many as 300, Chief Executive Officer Robert Martin said in a Bloomberg interview in September. At present, it manages 12 aircraft for third parties out of the 75 in its fleet, according to its Web site.

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Jan. 8 (Bloomberg) -- Asian stocks dropped for a fourth day after increases in U.S. jobs and wages damped speculation interest rates will be cut in the region's biggest export market. Samsung Electronics Co. and Hon Hai Precision Industry Co. fell.

The U.S. data is ``taking some of the glitter out of the share market,'' said Hans Kunnen, who helps oversee $70 billion at Colonial First State in Sydney. ``The nirvana scenario for share investors was for a U.S. interest rate cut early this year, but the reports suggest that may not happen quite so soon.''

Bank of China Ltd. fell after regulators raised the amount of money banks must set aside as reserves, in an attempt to curb loan growth. BHP Billiton led a slide in mining stocks after commodities prices dropped to the lowest in almost two years.

The Morgan Stanley Capital International Asia-Pacific ex- Japan Index fell 1.2 percent to 387.31 as of 6 p.m. in Hong Kong as all 10 industry groups declined. China, Pakistan and Thailand were the region's only markets to advance, while Japan was closed for a national holiday.

Banks in South Korea dropped, led by Kookmin Bank, after the central bank reiterated its concern that soaring household debt would lead to financial instability. Singapore Telecommunications Ltd. extended declines after Motorola Inc., the world's No. 2 cell-phone maker, reported results that missed analyst expectations.

U.S. stocks fell the most in a month in New York on Friday after a Labor Department report showed employers added 167,000 workers to payrolls in December. Economists surveyed by Bloomberg News expected an increase of 100,000. Workers' average hourly earnings rose 0.5 percent, the most since April.
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Jan. 15 (Bloomberg) -- Japan's machinery orders rose more than expected, fueling speculation the central bank will raise the lowest interest rates among major economies this week.

Non-government orders, excluding shipping and utilities, climbed 3.8 percent in November to 1.06 trillion yen ($8.8 billion) from October, the first back-to-back gains since 2005, the Cabinet Office said today in Tokyo. The median estimate of 28 economists surveyed by Bloomberg News was for 3.5 percent.
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Jan. 23 (Bloomberg) -- Asian property and financial stocks fell as investors judged recent gains as excessive relative to earnings prospects. Cheung Kong (Holdings) Ltd. and Oversea- Chinese Banking Corp. led the decline.

``Developers underperformed the overall market last year so they were playing catch up,'' said Anthony Muh, who helps manage $1 billion at Alliance Trust Plc in Hong Kong. ``They're now fully valued.''

Steelmakers including Baoshan Iron & Steel Co. advanced as investors considered the stock undervalued. Elpida Memory Inc. and High Tech Computer Corp. dropped on concern demand for their electronics products will decline.

The Morgan Stanley Capital International Asia-Pacific Index was little changed at 141.43 at 6:44 p.m. in Tokyo. The measure yesterday jumped to the highest close since Jan. 2. More than five stocks dropped for every four that rose.

Kajima Corp. and Shimizu Corp. led declines by Japanese construction companies for a second day as regulators continue to investigate suspected bid-rigging at three of nation's biggest builders. Japan's Nikkei 225 Stock Average lost 0.1 percent while the broader Topix Index was little changed.

Benchmarks in Hong Kong and Singapore fell from records. They also dropped in South Korea, Indonesia, Thailand, Sri Lanka, and India. Australia's S&P/ASX 200 Index and China's Shanghai and Shenzhen 300 Index closed at new highs.
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Jan. 30 (Bloomberg) -- Japan's factory production rose to a record, while household spending fell, underscoring concern the country's longest economic expansion since World War II is leaving consumers behind.

Industrial production climbed a seasonally adjusted 0.7 percent in December to a record, the trade ministry said in Tokyo today. Household spending declined 1.9 percent from a year earlier, the statistics bureau said.

Without a recovery in consumer spending Bank of Japan Governor Toshihiko Fukui is unlikely to propose raising interest rates, the lowest among industrial nations. Another report today showed the unemployment rate rose to 4.1 percent in December, fueling concern that wage growth will remain sluggish.

``Even with signs production is solid, the Bank of Japan won't be able to raise rates as consumption and inflation, which are its two main concerns, show no signs of improving in the coming months,'' said Yasukazu Shimizu, a senior economist at Mizuho Securities Co. in Tokyo.

The yen traded at 121.64 per dollar at 10:17 a.m. in Tokyo compared with 121.78 before the reports were published. The median estimate of 41 economists surveyed by Bloomberg News was for industrial production to increase 0.4 percent.

Governor Fukui and his policy board colleagues voted by a 6- 3 majority to keep borrowing costs unchanged earlier this month, saying they need to gather more evidence about the strength of consumer spending and prices.

Core consumer prices, which exclude fresh food, rose 0.1 percent in December, a report showed last week, already weakening the prospects for a rate increase when the bank concludes its next two-day policy meeting on Feb. 21.
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Feb. 5 (Bloomberg) -- Raising interest rates didn't work.

So now Asia's central bankers and governments are trying curbs on bank lending, construction fees, even environmental regulations in an effort to combat asset bubbles that have made Seoul the world's second-priciest city and Mumbai apartments cost as much as Manhattan's.

The measures aim to control lending and stem a gusher of money from overseas lured by the more than 25 Asian interest- rate increases last year. The risk is that the new measures, easily circumvented and effective only for limited duration, may work no better at deflating bubbles before they burst and prices tumble, potentially shaking global markets.

``It doesn't take a lot of capital inflows to create very bubbly positions, inflationary positions, financially destabilizing positions,'' says Bill Belchere, Asian economist at Macquarie Securities Ltd. in Hong Kong. Policy makers, he says, are ``a bit confused about how to handle this.''

Developing countries in Asia attracted $98 billion in overseas investment last year, according to United Nations statistics, about four times the average from 1998 to 2004. Investment in emerging markets in other regions declined last year, the UN figures show.

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Feb. 6 (Bloomberg) -- Asian stocks approached a record after Nikon Corp. and Olympus Corp. raised profit forecasts, and Toyota Motor Corp. posted earnings that beat analyst estimates.

``Third-quarter earnings have turned out solid overall and there's still room for further increases for this year,'' said Hideo Arimura, who helps look after $16 billion at Dai-Ichi Kangyo Asset Management Co. in Tokyo.

Doosan Infracore Co., South Korea's biggest maker of construction equipment, climbed after the company forecast a 22 percent jump in profit for this year. China's Industrial Bank Co. led a rebound in the nation's stocks after saying earnings growth picked up in 2006.

The Morgan Stanley Capital International Asia-Pacific Index gained 0.8 percent to 143.21 at 6:36 p.m. in Tokyo, just shy of the record close of 143.25 set May 8. All of its 10 industry groups advanced. Japan's Nikkei 225 Stock Average added 0.4 percent, while the broader Topix index rose 0.9 percent.

Australian stocks closed at a record on speculation the central bank will refrain from raising interest rates. Indonesia, the Philippines and Thailand were the only markets to fall in the region. New Zealand was closed for a holiday.

Tokyo Electric Power Co. advanced on expectations strong profit growth will prompt utility companies to increase dividends.

Economic expansion and earnings growth has helped drive Asian stocks higher in each of the past four years, and MSCI's regional benchmark is up 2 percent in 2007.

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Feb. 8 (Bloomberg) -- Asian stocks declined the most in almost two weeks, led by utility companies, after Korea Electric Power Corp. posted an unexpected loss and investors considered Tokyo Electric Power Co.'s recent gain to be excessive.

``Power companies have risen too much and are becoming less attractive,'' said Naoki Fujiwara, who oversees $720 million in assets at Shinkin Asset Management Co. in Tokyo. ``Money is shifting out of power companies into other shares with higher dividend yields.''

BHP Billiton and PetroChina Co. dropped after prices of metals and crude oil declined. Higher profits drove gains in shares of Esprit Holdings Ltd. and Chugai Pharmaceutical Co.

The Morgan Stanley Capital International Asia-Pacific Index lost 0.5 percent to 142.59 at 7:56 p.m. in Tokyo, its steepest decline since Jan. 26. A measure of utilities, the biggest gainers this year, lost 2.5 percent, the largest drop among the gauge's 10 industry groups today.

Japan's Topix index slid 0.5 percent while the Nikkei 225 Stock Average was little changed. Thailand's SET Index rose 2.4, the region's biggest gain. Other benchmarks fell, except in China, Hong Kong, India, Malaysia and Pakistan.

HSBC Holdings Plc fell after the bank said it's setting aside more money than analysts estimated for loan losses, prompting JPMorgan Chase & Co. to cut its rating on the stock.

The Shanghai and Shenzhen 300 Index added 1.7 percent after the Shanghai Securities News reported the government may allow insurers to buy more equities. Daqin Railway Co., the operator of China's biggest coal transport network, surged.

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Feb. 10 (Bloomberg) -- Japan's five-year notes completed a weekly gain after a government report showed machinery orders fell, adding to speculation economic growth is too fragile to withstand an increase in rates.

The first drop in orders in three months helped government notes yesterday advance for a third day, the longest winning streak since November, on expectations the Bank of Japan will hold off raising rates at a policy meeting that ends on Feb. 21. The bank doesn't need to be hasty about lifting borrowing costs because there's no threat that rising prices will cripple growth, policy board member Hidehiko Haru said on Feb. 8.

``Economic reports are pointing to the fact that the central bank is less likely to raise rates this month,'' said Shuntaro Take, who helps oversee the equivalent of $25 billion in fixed-income assets in Tokyo at Tokio Marine & Nichido Fire Insurance Co., a unit of Japan's largest casualty insurer. ``Government bonds were solid this week.''

Five-year bond yields fell 3 basis points on the week. The yield on the new benchmark 1.2 percent note due December 2011, which was auctioned on Feb. 8, dropped 4.5 basis points yesterday to 1.19 percent at Japan Bond Trading Co., the nation's largest interdealer debt broker. A basis point is 0.01 percentage point.

Ten-year yields dropped 3.5 basis points to 1.69 percent over the week. Bond futures for March delivery gained 0.40 to 134.57 over the five days of trading.

The three-day gain in the price of five-year notes was the longest since Nov. 13, 2006, when they completed a four-day rally.

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Feb. 16 (Bloomberg) -- Marc Teng, a Malaysian real-estate agent and developer, is taking over a half-finished townhouse project in Kuala Lumpur this year because a Chinese fortuneteller says it's a good investment.

``It's got good feng shui,'' said Teng. His decision is affirmed by astrologers, numerologists and other Asian geomancers who are laying down their predictions as Lunar New Year, the most important date on the Chinese calendar, dawns under the sign of the pig Feb. 18. They like real estate.

Geomancy -- divining the future from readings based on stars, numbers and energy flows -- purports to predict events as diverse as stock prices, personal relationships and natural disasters.

Many Asians, especially small businesspeople, use geomancers to help make decisions, said Kang Jeong Won, a professor of anthropology at Seoul National University.

``The markets are complex and hard to predict, so it's a way of seeing through the uncertainty,'' said Kang, 43. ``They don't necessarily believe in it 100 percent.''

Asian markets aren't easy to divine these days. The Morgan Stanley Capital International Asia-Pacific Index swung between a 3 percent loss and a 3 percent gain this year en route to a record yesterday. The Shanghai and Shenzhen 300 Index tumbled 12 percent in the five days ending Feb. 5 and also reached a new high yesterday.

At the same time, there are more Asian investors, and they are getting richer. Assets managed by Chinese mutual funds jumped 83 percent last year to 856 billion yuan ($110 billion), for instance. Apartments in Mumbai sell for almost as much as comparable properties in Manhattan.

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Feb. 16 (Bloomberg) -- Thailand's military leader said he wants to take back control of 140 billion baht ($3.9 billion) of assets sold to Singapore's government, escalating a diplomatic spat between the Southeast Asian nations.

``Singapore is a very small country, but it is so rich that it can buy 140 billion baht of our national assets,'' said Sondhi Boonyarataklin, who led a September coup that toppled the government of Thaksin Shinawatra. ``I am thinking about whether we can take those assets back.''

Singapore's Temasek Holdings Pte last year bought control of Thaksin's mobile phone and satellite group, provoking an outcry against the sale of strategic companies to a foreign government. Sondhi last month accused Singapore of using those assets for spying, a charge the city-state has denied.

``I thought things had calmed down on the subject, but this does suggest that maybe things took a turn for the worse,'' said David Cohen, a Singapore-based economist at Action Economics. ``It is difficult to anticipate which direction the politics in Thailand would go right now.''

The sale of Shin Corp., the holding company founded by Thaksin, angered Thais because the billionaire businessman's family didn't pay tax on the proceeds. The deal exacerbated protests and a political stalemate in Thailand that led to Thaksin's ouster in the Sept. 19 coup.
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Feb. 19 (Bloomberg) -- Asian stocks advanced to a record, led by Japanese retailers and steelmakers, on speculation takeovers will increase in both industries.

Daimaru Inc., Japan's third-biggest publicly traded department store operator, surged the most in 15 months after saying it may seek mergers and the Nikkei newspaper said it might combine with Matsuzakaya Holdings Co. JFE Holdings Inc. rose to a record on speculation steel companies may pursue alliances.

``Mergers and acquisitions will be a theme for this year's stock investment and targets will be mature industries with too many players who are not benefiting much from having their shares listed,'' said Koichi Takatsuka, who oversees $1 billion at UAM Japan Inc. in Tokyo. ``Retailers are the typical example.''

E*Trade Australia Ltd. and Funtastic Ltd. led Australian shares higher after they received takeover offers. India's ICICI Bank Ltd. gained on speculation it would raise lending rates.

The Morgan Stanley Capital International Asia-Pacific Index gained 0.2 percent to 147.13 as of 7:36 p.m. in Tokyo. Japan's Nikkei 225 Stock Average added 0.4 percent to 17,940.09, while the broader Topix index rose 0.3 percent.

Australia's S&P/ASX 200 Index climbed 0.6 percent after touching an intraday high. Measures also rose in Indonesia, India and Pakistan, while they fell in New Zealand, Thailand, the Philippines and Sri Lanka.

Thai stocks declined on concern violence will escalate in the country's southern provinces, undermining investor confidence, after explosions killed at least seven people. Markets were closed for the Lunar New Year holiday in China, Hong Kong, Malaysia, Singapore, South Korea and Taiwan.
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Feb. 21 (Bloomberg) -- Citigroup Inc.'s property unit said it raised $1.29 billion for its first fund to invest in real estate and related assets in the Asia-Pacific region, with a focus on China and India.

Citigroup, the largest U.S. bank, and its investment professionals committed $200 million to the fund, CPI Capital Partners Asia Pacific LP, according to a statement from the New York-based bank. The fund will be managed by a Hong Kong-based team of more than 25 employees led by managing director David Schaefer. About 40 percent of the fund has been invested or pledged already.

Fund managers are trying to profit from fast-growing economies in Asia and capture more fee income from managing assets on behalf of pension funds seeking the annual returns of 10 percent or more that funds such as Citigroup's are designed to provide. Since the beginning of 2006, U.S. managers have raised more than $5 billion to invest in Asian real estate, according to Private Equity Intelligence Ltd. in London.

``Asia is a compelling market for private equity real estate investments,'' said Joseph Azrack, 59, president and chief executive officer of Citigroup Property Investors, in a statement.

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By Mayumi Otsuma

March 2 (Bloomberg) -- Japan had zero inflation in January, underscoring the nation's struggle to overcome seven years of slumping prices.

Core consumer prices, which exclude fresh food, were unchanged from a year earlier, the statistics bureau said today in Tokyo, matching the median estimate of 39 economists. It's the first time prices failed to rise since May, and followed a 0.1 percent gain in December.

Wages fell the most in more than two years, a separate report showed, damping prospects for faster inflation and higher interest rates in the world's second-largest economy. The Bank of Japan raised rates for the second time in six years last week and Governor Toshihiko Fukui said further increases will be gradual.

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March 9 (Bloomberg) -- Japan's machinery orders rose the most in five months in January, signaling that capital spending will keep fueling growth in the world's second-largest economy.

Non-government machinery orders, excluding shipping and utilities, rose a seasonally adjusted 3.9 percent to 1.09 trillion yen ($9.4 billion) from December, when they fell 0.7 percent, according to a Cabinet Office report released in Tokyo today. The median estimate of 40 economists surveyed by Bloomberg News was for a 1.4 percent gain.

The machinery report indicates spending plans within six months and may offset concern growth will slow after industrial output fell in January. Tokyo Electron Ltd. said yesterday it would build its first factory in a decade, joining companies upgrading machinery as the economy emerges from a decade of post 1980s asset-bubble stagnation.

``For the first time in 15 years, Japan's companies don't have enough capacity, so their capital spending is aggressive,'' senior economist Yasuo Yamamoto at Mizuho Research Institute in Tokyo. ``They need to update old equipment to face tough global competition.''
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March 10 (Bloomberg) -- Japanese 10-year bonds rose for a third week, the longest winning streak since November, on speculation a global decline of stocks will increase demand for the safety of government debt.

Bonds rounded out their biggest rally in seven weeks as the Nikkei 225 Stock Average dropped for a second week on concern growth in the U.S., Japan's biggest export market, is losing momentum. Bank of Japan Deputy Governor Kazumasa Iwata this week said the recent slide in shares may have a negative effect on economic growth and it's necessary to carefully monitor stock price adjustments.

``The global downturn in stocks has pumped more money into safer assets,'' said Ryohei Muramatsu, manager of Group Treasury Asia at Commerzbank AG, a unit of Germany's second-largest bank. ``Japanese bonds are no exception. Bonds will be well supported and yields can hardly climb in such a situation.''

The yield on the benchmark 10-year bond fell 6 basis points to 1.605 percent this week, according to Japan Bond Trading Co., the nation's largest interdealer debt broker. The decline in yields was the most since the period ended on Jan. 19. The price on the 1.7 percent bond due March 2017 gained 0.518 yen to 100.818 yen. A basis point is 0.01 percentage point.

Ten-year yields may fall to 1.58 in the next month, Tokyo- based Muramatsu said.
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By Yoolim Lee

March 14 (Bloomberg) -- Singapore, once so staid it banned bungee jumping, has cut taxes, opened its doors to casinos and hired fund managers to oversee billions of dollars of state funds to help attract international investment.

While the city-state has made progress toward becoming a more vibrant financial hub, it's still falling behind perennial rival Hong Kong.

Assets held by Hong Kong fund managers tripled to $579 billion from 2000 to 2005, while Singapore's assets more than doubled to $472 billion, according to regulators in the two cities. Hong Kong's stock-market value has swelled to more than five times Singapore's.

The Singapore government's grip on the economy, which extends from the city's largest companies to its newspapers, stifles the entrepreneurialism that fuels Hong Kong's success, says investor Anil Thadani. While Singapore has loosened the reins, it's not moving fast enough to match Hong Kong, he says.

``Singapore has been unnecessarily restrictive,'' says Thadani, chairman of Singapore-based Symphony Capital Partners (Asia) Pte, which invests in Asian health-care companies and luxury resorts. ``People who are told from birth what to do and say aren't likely to be self-starting entrepreneurs. We need a generation to change the mindset.''

With its government-driven economy, Singapore can't rival Hong Kong in breeding private companies, says Andy Xie, a Hong Kong-based economist. Li Ka-shing, Asia's richest man, built an empire spanning from telecommunications and property to retail after arriving in Hong Kong in 1940 as a refugee from China.

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March 17 (Bloomberg) -- Asian stocks fell for a third week, the longest stretch of losses in almost six months, as U.S. reports on home-loan delinquencies, manufacturing and prices point to slowing growth in the world's largest economy.

HSBC Holdings Plc, James Hardie Industries NV and Toyota Motor Corp. led declines among companies that rely on U.S. sales.

``The U.S. is showing signs of a slowdown, while the real extent of the subprime lending problem is still a question,'' said Winson Fong, who manages $2 billion as chief investment officer at SG Asset Management in Singapore. ``Investors are cutting back their positions in the event the problems turn out to be very serious.''

The Morgan Stanley Capital International Asia-Pacific Index lost 0.9 percent to 141.28 this week, extending a two-week 3.6 percent drop. That's its longest losing streak since a similar period ended Sept. 22.

Japan's Nikkei 225 Stock Average dropped 2.5 percent over the past five days, led by Sony Corp., after the yen strengthened against the dollar, reducing the value of exporters' overseas sales.

Around the region, indexes in South Korea, Taiwan, Indonesia and Thailand eked out gains for the week. Other markets fell.

Among the region's advancing shares, technology stocks posted the biggest advances after TDK Corp. said it's in talks to buy a unit of Alps Electric Co. and analysts advised investors to buy shares of High Tech Computer Corp.

U.S. stocks fell this week, leading the Standard & Poor's 500 Index to a 1.1 percent weekly drop. A measure of homebuilders posted the biggest decline on the gauge.
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March 20 (Bloomberg) -- Asian stocks trading in the U.S. rose for a second day, the first back-to-back advance in a month. Mining shares including BHP Billiton gained along with prices of gold and copper.

The Bank of New York Co.'s Asia ADR Index, tracking the region's American depositary receipts, climbed 0.7 percent to 158.47, following yesterday's 1.3 percent advance. The index last posted consecutive gains in a five-day rally that ended Feb. 20.

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March 21 (Bloomberg) -- Asian economies including South Korea and Singapore are likely to expand at a slower pace in the first quarter as easing export orders curb production and consumer confidence ebbs, according to Capital Economics Ltd.

The slowdown in growth may give Asian central banks room to reduce interest rates, wrote London-based economist Keith Gyles in an e-mailed report. Bank Indonesia lowered borrowing costs this month for the 10th time since May, while policy makers at the Bank of Thailand have cut rates twice this year.

``Across Southeast Asia, the prospect is for further rate cuts over the next few months, driven by slowing growth, fading inflation concerns, and local currency strength against a globally weak dollar,'' Gyles said. ``We expect rates to be falling in Korea by the end of the year as well, as the economy slows and concerns about the booming housing market ease.''

South Korea's export outlook is ``not as bright'' as expected amid signs of cooling U.S. growth and a rout in global stock markets, Commerce Minister Kim Young Ju said last week. The nation's overseas shipments increased at the slowest pace in four months in February on fewer sales of computer parts and home appliances.

A global equity sell-off erased $3.3 trillion in market value between Feb. 27 and March 5, triggered by a decline in Chinese shares and on concern over the extent of the slowdown in the U.S. economy, threatened by a mortgage crisis.
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Yuri Kageyama

Saturday, March 24, 2007

Internet startup Livedoor was hit with the largest-ever fine in corporate Japanese history for violating securities laws, the latest blow in a scandal that has led to seven convictions for former executives and accountants.
The Tokyo District Court fined Livedoor 280 million yen (HK$18.56 million) Friday and subsidiary Livedoor Marketing 40 million yen.

Earlier, two accountants were convicted in the court for fabricating earnings - the latest verdicts in a series of trials involving Livedoor, once one of Japan's flashiest dotcoms.

The tough fines and prison terms being doled out to those at the center of the scandal are sending a strong message about companies testing what are still gray areas in stock trading.

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March 27 (Bloomberg) -- Australia's mutual fund assets have more than doubled in the past four years, making it the world's fourth-largest market, ahead of Germany and Japan.

That's attracting overseas money managers who once ignored the country of 20 million people.

Fifteen years after the start of a mandatory retirement savings program, Australians are the world's biggest fund investors, holding an average of A$48,178 ($38,802) each, according to Australian Finance Group. Total assets rose to $763 billion from $356 billion in the 3 1/2 years ended June 30, data from the Washington-based Investment Company Institute shows.

``All that money simply cannot be invested in Australia,'' says Alan McFarlane, managing director of Walter Scott & Partners Ltd. in Edinburgh, which oversees more than A$3 billion for Australian investors. ``That makes Australia one of the most attractive markets on this planet for global equity mandates.''

Australia in 1992 shifted the burden for pensions to a savings program funded by employer and worker contributions, much like U.S. President George W. Bush proposed for the country's Social Security program. Fueled by those savings and rising commodity prices, Australia's S&P/ASX 200 stock index rose 72 percent in the three years ended Dec. 31, almost triple the gain in Standard & Poor's 500 Index.

Charlie Jacklin, chief executive officer of San Francisco- based Mellon Capital Management Corp., last August flew 23 hours to Ayers Rock in the Australian Outback to meet with 40 pension fund executives.

``It's a great pension scheme and superior to the U.S. plan for dealing with retirement issues faced by the baby-boomer generation,'' says Jacklin, 52.

Mellon Capital has 24 contracts to manage Australian funds. It added 12 last year, including A$250 million it oversees for Sunsuper Pty, the nation's third-biggest pension fund.

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Japan's consumer prices fell for the first time in 10 months and economists say further declines will keep the central bank from raising interest rates until the second half of the year.
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April 2 (Bloomberg) -- Japanese companies plan to invest at a faster pace than economists expected, indicating they're upbeat about the outlook for growth at home and abroad.

The Tankan, Japan's most closely watched business survey, showed large companies plan to increase spending by 2.9 percent in the year that began April 1, the Bank of Japan said in Tokyo today, beating economists' estimates. Sentiment among the nation's largest manufacturers slipped from a two-year high.

Increased spending will help Elpida Memory Inc. and Kyocera Corp. compete against Asian rivals while banks and retailers invest to meet domestic demand. Japan's labor shortage became the most severe in 15 years, the companies said, suggesting wage growth may accelerate and support consumer spending.

``Companies are going to be aggressive in their capital spending plans this year,'' said Takuji Aida, chief Japan economist at Barclays Capital in Tokyo. ``Labor shortages are intensifying so that means we'll see wages rise.''

The yen traded at 117.62 per dollar at 3:55 p.m. in Tokyo from 117.74 before the report. The yield on Japan's benchmark 10-year bond slipped half a basis point to 1.645 percent.

The Topix stock index fell 1.8 percent, led by Nippon Steel Corp., after the report showed the outlook for iron and steelmakers dropped to 31 from 46, the largest slide among all groups surveyed. The index rose as much as 0.8 percent in the morning session.

The Tankan showed manufacturer confidence fell to 23 points in March from a two-year high of 25 in December. The median forecast of 30 economists was for 24. A positive number means optimists outnumber pessimists.

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April 6 (Bloomberg) -- Japanese retailers paced declines in Asian stocks after the Nikkei newspaper said that Seven & I Holdings Co.'s profit may miss the company's forecast.

``The report on Seven & I prompted some disappointment among investors,'' said Haruo Otsuka, who oversees $870 million at Toyota Asset Management Co. in Tokyo. ``Retailers are not doing all that badly but not well enough to attract money from other industry groups.''

Aeon Co. dropped for a second day after it forecast earnings that failed to meet investors' expectations. Industrial & Commercial Bank of China Ltd. led the country's lenders lower after they were ordered to set aside more money as reserves.

The Morgan Stanley Capital International Asia-Pacific Index lost 0.2 percent to 146.17 at 7:00 p.m. in Tokyo, set for a 1.1 percent gain this week. Japan's Topix Index dropped 0.2 percent. China's CSI 300 Index rose, climbing to a record for a fifth day.

Measures in South Korea, Malaysia and Pakistan rose. Other markets in Asia and a number in Europe and North America are closed today for the Good Friday holiday.

Hyundai Motor Co. slid after South Korea's top-ranked analyst said the company's slow Chinese sales may reflect a weak brand image.

Seven & I, Japan's largest retailer by sales, dropped 2.4 percent to 3,600 yen. Aeon, the country's biggest supermarket operator, slid 3.7 percent to 2,225 yen. Yamada Denki Co., an operator of consumer electronics stores, declined 2.8 percent to 10,930 yen.
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April 10 (Bloomberg) -- The Bank of Japan kept interest rates unchanged for a second month after consumer prices fell and recent data signaled U.S. economic growth may slow.

Governor Toshihiko Fukui and his policy board colleagues voted unanimously to hold the key overnight lending rate at 0.5 percent, the lowest among major economies, the bank said in a statement today in Tokyo. The decision was expected by all 49 economists surveyed by Bloomberg News.

Fukui later told reporters that the U.S. economy will achieve a soft landing and Japan's consumer prices will rise in the long run after hovering around zero percent in coming months. Confidence among Japan's largest manufacturers slipped from a two-year high on concern a U.S. slowdown may hurt exports, the central bank's quarterly Tankan business survey showed last week.

``There's still a pretty big chance for a rate hike later this year if the central bank can confirm Japan's growth is supported by demand at home, even if the U.S. economy deteriorates,'' said Ryutaro Kono, chief economist at BNP Paribas Securities Japan Ltd. ``We expect the bank to act in the fourth quarter.''

The yen traded at 159.74 per euro at 5:16 p.m. in Tokyo, after falling to a record 159.90. Japan's currency was at 119.15 against the dollar compared with 119.03 before the policy decision was announced.

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April 12 (Bloomberg) -- Japan's producer-price inflation accelerated for the first time in six months in March as a rebound in oil prices pushed up the cost of gasoline and chemical materials.

An index of prices businesses pay for energy and raw materials climbed 2 percent from a year earlier after rising a revised 1.7 percent in February, the Bank of Japan said in Tokyo today. The result beat the 1.9 percent median estimate of 33 economists surveyed by Bloomberg News.

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April 13 (Bloomberg) -- Asian stocks headed for a second straight weekly gain. Woodside Petroleum Ltd. and Inpex Holdings Inc. led energy producers higher today after crude oil prices jumped the most in two weeks.

``The rising price of oil will spark some interest in'' energy stocks, said Soichiro Monji, who helps oversee about $47 billion at Daiwa SB Investments Ltd. in Tokyo.

Sony Corp. rose to an almost five-year high after the Nikkei reported operating profit this fiscal year will beat analyst estimates. Samsung Electronics Co. slid after posting its second straight quarterly profit drop.

The Morgan Stanley Capital International Asia-Pacific Index added 0.1 percent to 147.58 as of 10:50 a.m. in Tokyo. The measure was set to climb 0.9 percent this week, after last week's 1.1 percent rise.

Japan's Nikkei 225 Stock Average advanced 0.1 percent to 17,593.31, while the broader Topix index slid 0.1 percent. Canon Inc. led technology shares higher after the yen fell to a record low against the euro, boosting the value of overseas sales.

Markets elsewhere in the region gained, except in South Korea, where the Kospi index fell from a record, China and Taiwan. Thailand was closed for a holiday.

U.S. shares resumed their April climb yesterday, led by health-care and energy companies, amid speculation over takeovers and higher oil prices. The Standard & Poor's 500 Index gained 0.6 percent.

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April 13 (Bloomberg) -- Asian stocks fell after Samsung Electronics Co.'s earnings missed analyst estimates and Seven & I Holdings Co. reported profit lower than the company's forecast.

``With earnings announcements coming into high gear, the outlook for the coming year is unclear and there's the strong possibility that we'll have conservative company forecasts,'' said Mitsushige Akino, who oversees $468 million in assets at Ichiyoshi Investment Management Co.

Fast Retailing Co., the operator of Japan's Uniqlo casual clothing stores, slid after lowering its net-income forecast. Westfield Group dropped after the Australian dollar climbed to a 17-year high, reducing the value of overseas earnings.

The Morgan Stanley Capital International Asia-Pacific Index dropped 0.2 percent to 147.11 as of 7:41 p.m. in Tokyo, reversing an earlier advance of 0.4 percent. The measure was set to end the week 0.6 percent higher, extending last week's 1.1 percent rise.

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April 19 (Bloomberg) -- Demand for services in Japan unexpectedly rose to a record in February, suggesting consumers may drive growth in the world's second-largest economy.

The tertiary index, a gauge of money spent on services such as retailing and telecommunications, climbed a seasonally adjusted 1 percent after rising a revised 0.4 percent in January, the trade ministry said today in Tokyo. The median estimate of 36 economists surveyed by Bloomberg News was for a 0.5 percent drop.

Bank of Japan Governor Toshihiko Fukui told his regional branch managers today that consumer spending is ``solid,'' and the government upgraded its assessment of private consumption for the first time in 20 months earlier this week. Spending by individuals and households makes up more than half of the economy and a rebound may extend the expansion amid weaker export demand and slower factory output.

``The report was good and provides further evidence that consumption is picking up,'' said Yoshiki Shinke, an economist at Dai-Ichi Life Research Institute in Tokyo. ``Consumption will probably be strong in the first quarter, but we'll need to see more signs of wage growth before we can determine whether this is sustainable or not.''

The yen rose to 118.28 per dollar at 10:14 a.m. in Tokyo from 118.52 before the report was published.
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April 21 (Bloomberg) -- Japan's five-year government notes had the biggest weekly slide in almost four months as a rally in local stocks reduced the allure of debt.

Demand for the securities was also curbed after the Yomiuri newspaper reported yesterday the Bank of Japan will say next week that consumer-price inflation will double next fiscal year, eroding the value of the fixed payments from debt. The Nikkei 225 Stock Average yesterday rebounded from biggest drop since March 14.

``All the news we are seeing now are likely to help bond yields to climb,'' said Kohei Hashimoto, who helps manage Japanese bonds at Sumitomo Life Insurance Co., which holds the equivalent of about $176 billion in assets. ``An advance in share prices can prompt the central bank to raise rates sooner than later.''

Five-year yields rose 5.5 basis points this week to 1.25 percent in Tokyo, the biggest gain since the five days ended Dec. 29, according to Japan Bond Trading Co., the nation's largest interdealer debt broker. The price of the 1.2 percent note due March 2012 yesterday fell 0.254 yen to 99.769 yen. Ten-year yields rose 2 basis points this week to 1.68 percent. A basis point is 0.01 percentage point.

Asian and European stocks slid on April 19 on concern China will raise interest rates to slow economic growth, helping push Japan's five-year bond yields down the most since April 11. A rout in Chinese equities on Feb. 27 saw Japan's debt due in 10 years or longer return about 0.6 percent in the following three weeks, while the Nikkei 225 lost 8.1 percent.

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April 27 (Bloomberg) -- The Bank of Japan slashed its inflation forecast close to zero and kept the benchmark interest rate unchanged, saying prices will take another year to accelerate.

Core consumer prices will rise 0.1 percent in the 12 months ending March 2008 and 0.5 percent the following year, the central bank said in Tokyo today in its semi-annual outlook. Policy makers had previously predicted a 0.5 percent inflation rate this year.

Stalling consumer prices will make it harder for the Bank of Japan to raise its 0.5 percent overnight lending rate to prevent excessive business investment. The cheapest official borrowing cost among major economies has driven the yen to a record low against the euro and high-yielding currencies.
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May 1 (Bloomberg) -- Japanese wages fell for a fourth month in March, signaling that growth in consumer spending in the world's second-biggest economy will be limited.

Monthly wages, including overtime and bonuses, fell 0.4 percent after dropping 1 percent in February, the labor ministry said in Tokyo today. The median estimate of three economists surveyed by Bloomberg News was for wages to fall 0.2 percent.

Until wages begin to rise, consumer spending will probably lag behind exports and corporate investment as the main drivers of growth. The Bank of Japan said last week wage increases will begin to pick up amid a jobless rate at a nine-year low and the largest labor shortages in 15 years.

``We can't count on strong growth from consumer spending until we see steady increases in wages,'' said Naoki Iizuka, senior economist Mizuho Securities Co. in Tokyo. ``Labor conditions are improving and that's helping spending but it hasn't gotten to the point where companies need to increase wages to secure workers.''

The yen traded at 119.53 at 11:43 a.m. in Tokyo, from 119.54 before the report.

Consumer spending, which represents more than half of the economy, probably rose 0.6 percent in the first quarter after gaining 0.9 percent in final three months of last year, a report on Japan's gross domestic product is expected to show on May 17.

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May 1 (Bloomberg) -- Japanese stocks fell for a second day, wiping out all the gains from last month. Sony Corp. and Honda Motor Co. led declines after personal spending slowed in the U.S., eroding demand for exports.

Sumitomo Mitsui Financial Group Inc., the country's third- biggest lender by assets, paced banks lower after saying profit was worse than it forecast.

``Investors reacted to the slowing consumer spending by selling exporters,'' said Hideyuki Ookoshi, who oversees $365 million at Chiba-Gin Asset Management Co. in Tokyo. ``Japan's major banks need more time to recover as loan demand and profit margins remain small.''

The Nikkei 225 Stock Average slid 125.43, or 0.7 percent, to 17,274.98, erasing gains in made in April. The broader Topix index lost 7.75, or 0.5 percent, to 1693.25. Gauges that track technology-related companies and automakers such as Sony and Honda accounted for 37 percent of the Topix's fall.
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May 3 (Bloomberg) -- Texas Instruments Inc., the world's largest maker of mobile-phone chips, will spend $1 billion in the next 10 years to build an assembly and testing factory in the Philippines, which beat out China for the facility.

The 800,000-square-foot (72,000-square-meter) factory, among the largest for Texas Instruments, will employ 3,000 people, spokesman Gary Silcott said in an interview. The facility, to be completed by the end of 2008, will be able to handle many types of products, he said.

Texas Instruments in recent years has implemented a strategy of making about 80 percent of its chips and outsourcing the rest to reduce production quickly when demand weakens. The company's current management in the Philippines, where it has had a factory since 1979, gave that country the deciding edge over undisclosed locations in China, Silcott said.

``We got a really experienced team, and we wanted to quickly bring up the factory,'' he said.

The factory will be in the Clark Freeport Zone, a former U.S. military base until 1991 that has since become an area with tax incentives to encourage investments. Companies with offices in the zone include United Parcel Service Inc., the world's largest package shipper, and Rolls-Royce Group Plc, the second- largest aircraft-engine maker, according to the zone's Web site.

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May 4 (Bloomberg) -- Asian stocks extended a record high after metals prices climbed and better-than-forecast productivity growth in the U.S., the world's biggest economy.

Benchmarks in Australia, South Korea, Singapore and Malaysia climbed to new highs, tracking advances in the Morgan Stanley Capital International Asia-Pacific excluding Japan Index.

BHP Billiton Ltd., the world's largest mining company, rose to a three-week high as copper and zinc prices climbed. Samsung Electronics Co., South Korea's largest exporter, rose after U.S. worker productivity grew at more than twice economist projections and an index of non-manufacturing businesses climbed.

``Continued strong global growth is particularly good news for commodity prices and hence resources shares,'' said Shane Oliver, who helps oversee $83 billion at AMP Capital Investors in Sydney.

Fortescue Metals Group Ltd. and Doosan Heavy Industries & Construction Co. led an advance among companies that will be added the MSCI Barra's country equity benchmarks.

The MSCI regional index climbed 0.4 percent to 435.23 as of 9:33 a.m. in Hong Kong, after yesterday rising 0.8 percent to a record 433.62. The measure has gained 1.2 percent this week, poised to advance for the eighth time in nine weeks.

All markets open for trading gained, except in New Zealand and the Philippines. Benchmarks in China and Japan are closed for holidays today.

U.S. shares rose, lifting the Dow Jones Industrial Average to its third straight record this year.
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KYOTO, Japan (AP) -- Asia's poorest nations warned the Asian Development Bank of pursuing reforms that would cater to wealthier economies at the expense of the least developed.The concerns struck at the heart of one of the world's premier development banks, which was chartered four decades ago to end poverty through promoting economic growth. The bank is now trying to reinvent itself to remain relevant in a region where extreme poverty may be wiped out within 15 years.
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TOKYO (AP) -- Toyota expects that flat sales in North America -- where higher gas prices, a housing slump and a slowing economy have tempered consumer spending -- will slow growth in its overall sales and profits this year after double-digit gains last year.

Besides the anticipated sales slowdown, Toyota officials said Wednesday that investments in new plants to boost production and research costs to develop new models will depress its profit expansion for the fiscal year through March 2008.

Japan's biggest automaker has also been spending on quality controls, after suffering a surge in recalls that analysts say may be a byproduct of the automaker's recent aggressive growth efforts.

It expects a 0.4 percent rise in profit this year, its smallest improvement since its profit slipped in the fiscal year ending March 2002, while sales grow 4.4 percent.

By contrast, Toyota Motor Corp.'s profit rose 20 percent on a 14 percent rise in sales in the fiscal year ended this past March.

http://biz.yahoo.com/ap/070509/earns_japan_toyota.html?.v=15

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What Will Drive Returns In Emerging Market Bourses?

11:00:00, May 07, 2007

Continued strength in private equity and M&A activity will produce a re-rating of cheap emerging market bourses.

A Special Report published last week by our Emerging Market Strategy service argues that investors should continue paying attention to equity valuations, even though some value plays among developing markets, such as Taiwan and Thailand have underperformed in the past several years. The reason is that booming private equity and M&A activity will help eliminate valuation discrepancies over the coming year or two. In fact, private equity activity is equally as powerful in the emerging world as it has been in the developed world.

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May 14 (Bloomberg) -- Japan's current account surplus widened to a record in March, as exports to Asia and Europe helped counter slower growth in shipments to the U.S.

The surplus expanded 36.9 percent to 3.32 trillion yen ($28 billion) from a year earlier, the Ministry of Finance said in Tokyo today, more than the 2.95 trillion yen median estimate of 28 economists surveyed by Bloomberg News.

Today's report shows that so far Japan's economy has weathered waning U.S. demand. Finance ministers including Japan's Koji Omi this month predicted that Asia will withstand a slowdown in the U.S. and Europe this year, driven by expansion in China and India, the world's two fastest-growing major economies.

``Japanese exporters are reaping the benefits of strong demand in Asia,'' said Seiji Adachi, a senior economist at Deutsche Securities Inc. in Tokyo.

The yen traded at 120.18 per dollar at 9:52 a.m. in Tokyo compared with 120.11 before the report. The Nikkei 225 Stock Average rose 1 percent, led by exporters such as Canon Inc.

The trade surplus surged 62.1 percent to a record in March from same month a year earlier, the Finance Ministry said. Exports rose 9.6 percent, while imports fell 1 percent.

The current account tracks the flow of goods, services and investment income between Japan and its trading partners. The trade surplus includes trade not shown in the customs-cleared trade balance, which the Finance Ministry also compiles.

China overtook the U.S. as Japan's largest trade partner in the year ended March 31 for the first time, the ministry said last month.

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May 15 (Bloomberg) -- Japan's machinery orders fell unexpectedly in March and companies said the slump will deepen, undermining growth in the world's second-largest economy.

Orders dropped 4.5 percent from a month earlier after declining a revised 4.9 percent in February, the Cabinet Office said today in Tokyo. The median estimate of 38 economists surveyed by Bloomberg News was for a 1.5 percent increase.

The slump suggests companies will cut spending this year, weakening the Bank of Japan's case for raising the 0.5 percent overnight lending rate, the lowest among major economies. NEC Electronics Corp., the nation's third-largest chipmaker, said yesterday it plans to reduce capital investment by 30 percent.

``Today's data cast dark clouds over the state of capital expenditure,'' said Masaki Fukui, a senior economist at Mizuho Corporate Bank Ltd. ``On every count, machine orders were bad.''

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May 23 (Bloomberg) -- Asian stocks rose for a third day, led by Japanese banks after Mizuho Financial Group Inc. forecast record earnings.

Nintendo Co. led technology shares higher after saying U.S. sales of Wii video-game consoles may reach 35 million. Airline stocks gained on expectations Singapore Airlines Ltd. will buy a stake in China Eastern Airlines Corp.

Financial shares climbed the most among the 10 industry groups included in the Morgan Stanley Capital International Asia- Pacific Index. Mizuho, Japan's No. 2 lender, posted its biggest jump in more than a year.

``The banks are really standing out as their earnings have fostered some confidence,'' said Hideyuki Ookoshi, who oversees $365 million at Chiba-Gin Asset Management Co. in Tokyo.

The MSCI index rose 0.1 percent to 149.56 at 5.45 p.m. in Tokyo, 0.4 percent below the record close of 150.12 set May 9. China's CSI 300 Index climbed to a new high after a newspaper report damped speculation the government would increase fees on stock transactions.

Japan's Nikkei 225 Stock Average climbed 0.1 percent to 17,705.12. Other markets gained, except in Hong Kong, Malaysia, Thailand, India, Sri Lanka and the Philippines.

Financial and real-estate companies led most U.S. stocks higher for a third day after Treasury Secretary Henry Paulson said the slump in housing is ``largely'' over.

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May 25 (Bloomberg) -- Japan's consumer prices fell at a slower pace in April, signaling inflation may return soon and allow the central bank to raise interest rates.

Core consumer prices, which exclude fresh food, declined 0.1 percent from a year earlier, the government statistics bureau said today in Tokyo, matching the median estimate of 44 economists surveyed by Bloomberg News. The measure of inflation fell 0.3 percent in March, the steepest drop in two years.

Bank of Japan Governor Toshihiko Fukui said last week that the central bank could raise interest rates even with prices falling, as long as policy makers are confident about the economic and inflation outlook. Recent price increases by Oji Paper Co. and taxi companies suggest inflationary expectations are reviving among consumers and prices will resume rising.

``The improvement of consumer prices certainly provides relief and gives the BOJ's arguments some conviction,'' said Eishi Yokoyama, an economist at AIG Global Investment Corp. in Tokyo. ``We're going to see more speculation among investors about an early rate hike.''

The yen rose to 121.12 per dollar at 9:54 a.m. in Tokyo from 121.41 before the report was published, and to 162.54 per euro from 163.00. The yield on Japan's 10-year bond fell half a basis point to 1.69 percent.

Fukui has said prices will rise again once the effect of last year's gain in oil prices fades. The bank needs to increase the key overnight lending rate, now at 0.5 percent and the lowest among industrialized economies, as the economy expands and inflation gathers pace, he said.
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May 29 (Bloomberg) -- Japan's jobless rate unexpectedly fell to a nine-year low in April and households increased spending for a fourth month, suggesting consumers will help extend the economy's longest postwar expansion.

The unemployment rate dropped to 3.8 percent from 4 percent, the statistics bureau said today in Tokyo. The median estimate of 34 economists surveyed by Bloomberg News was for the number to stay unchanged for a fifth month. Household spending rose 1.1 percent, the bureau said, exceeding the 0.2 percent expectation.

Bonds fell on speculation falling unemployment will bolster wage growth and spending in the world's second-largest economy. Sustained growth in consumer spending may support the Bank of Japan's case that the economy is resilient enough to withstand an increase in interest rates, the lowest among major economies.

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May 31 (Bloomberg) --Asian stocks rallied to a record after the U.S. Federal Reserve predicted growth will pick up in the world's biggest economy.

Sony Corp. and Samsung Electronics Co. paced gains among exporters. China's CSI 300 Index rebounded after a slide yesterday that wiped out $161 billion of market value.

``The U.S. economy is posing less of a risk to markets than before,'' said Kim Woo Sik, who manages $210 million at SH Asset Management Co. in Seoul. ``China's fall yesterday wasn't because of fundamental problems with its economy, so the impact is pretty much contained within its borders.''

The Morgan Stanley Capital International Asia-Pacific Index rose 1.3 percent to 150.30 at 7:01 p.m. in Tokyo, recovering from a 0.5 percent drop yesterday. The measure has gained 2.8 percent this month, set for a record close.

The CSI 300 added 1.1 percent after slumping in morning trade. The index tumbled 6.8 percent yesterday after authorities tripled the tax on securities transactions to cool a boom in share trading. Japan's Nikkei 225 Stock Average advanced 1.6 percent to 17,875.75, its highest since Feb. 27.

Hyundai Heavy Industries Co. led South Korea's Kospi index 2.3 percent higher on booming ship orders. Only Taiwan's Taiex closed lower among the region's benchmarks. Markets in Singapore, Thailand and Sri Lanka are shut for public holidays.

BHP Billiton Ltd. rose after naming a successor to Charles `Chip' Goodyear as chief executive officer. Investa Property Group climbed to a record after Morgan Stanley agreed to buy the company for A$4.7 billion ($3.9 billion).

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June 1 (Bloomberg) -- Asian stocks rose to a second straight record, led by BHP Billiton Ltd. and Samsung Electronics Co., as prices of metals and memory chips climbed.

Toyota Motor Corp. jumped to a seven-week high on speculation U.S. sales gained in May. Almost twice as many stocks rose than fell on the Morgan Stanley Capital International Asia-Pacific Index. South Korea's Kospi posted a record 13th week of advances.

``Corporate and economic fundamentals are very strong,'' said Agnes Deng, who helps manage $3.5 billion at Standard Life Investments Asia in Hong Kong. ``Those kinds of things are building some support levels for the stock market.''

China's CSI 300 Index dropped, resuming a slump triggered by the government's May 30 decision to triple the tax on securities trades to try to cool the region's best performing equity market.

The MSCI index added 0.7 percent to 151.32 as of 8:05 p.m. in Tokyo after rising 1.3 percent yesterday to a record. The measure was poised for a 2.5 percent advance this week, the most since a similar period ended March 23.
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June 7 (Bloomberg) -- Asian stocks were little changed as concern global interest rates will rise dragged on technology and property shares, offsetting gains among oil producers.

Sony Corp. and Sino Land Co. led declines after U.S. labor costs rose more than economist forecasts, while energy shares including Cnooc Ltd. tracked oil higher. China's CSI 300 Index climbed for a third day, damping speculation a rout that erased more than $400 billion of market value will resume.

``We are moving into a phase whereby long-term interest rates will go a lot higher,'' said Chua Soon Hock, who manages about $400 million at Asia Genesis Asset Management Pte in Singapore. ``You need to be defensive and preserve your capital.''

National Australia Bank Ltd. fell after the government said May employment rose almost four times as much as economists estimated, suggesting borrowing costs may increase.

The Morgan Stanley Capital International Asia-Pacific Index fell less than 0.1 percent to 153.08 as of 4:33 p.m. in Tokyo. The measure rose 3.3 percent in the previous five days. BHP Billiton Ltd. led mining shares lower after metals prices fell.

Japan's Nikkei 225 Stock Average added 0.1 percent to 18,053.38, after earlier dropping as much as 1 percent. Trading companies advanced after Nikko Citigroup Ltd. raised its rating on shares of Sumitomo Corp. and Marubeni Corp.

Benchmarks declined in other regional markets, except for South Korea, Taiwan and Thailand.

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BANGKOK, Thailand (AP) -- Most Asian markets tumbled Friday after shares on Wall Street fell sharply amid growing speculation a U.S. interest rate cut was unlikely. Chinese stocks, however, bucked the trend and rose for a fourth straight session.

In Tokyo, the Nikkei 225 average fell 274.29 points, or 1.52 percent, to 17,779.09, and Hong Kong's Hang Seng Index fell 291.01 points, or 1.4 percent, to 20,509.15.

Singapore shares were down 1.5 percent and Australian stocks lost 1.3 percent. Other markets, including Thailand, Taiwan and Malaysia fell less than 1 percent, and Philippines shares ended little changed.

Many Asian markets remain sensitive to moves on Wall Street and indicators about the U.S. economy because it one of the biggest markets for the region's exporters.

Earlier this month, benchmark indexes in Australia, Indonesia, the Philippines, Singapore and South Korea all hit records.

In China, where shares plunged 8.3 percent Monday, the Shanghai benchmark index gained 0.6 percent Friday to 3,914.18.

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June 9 (Bloomberg) -- Indonesia's rupiah led declines in Asian currencies on speculation losses in global equity markets encouraged investors to sell riskier assets.

The rupiah fell the most since May 2006 and the Philippine peso had the biggest slide since July 2002 as the Morgan Stanley Capital International Asia-Pacific Index of stocks followed U.S. and European shares lower. Concern world interest rates will rise and slow consumer spending and investment spurred the sell- off in emerging-market assets.

``There's a fair amount of risk reduction,'' said Chia Woon Khien, a Singapore-based bond and currency strategist at Barclays Capital Plc. ``Some markets like Indonesia, where's there's been a good rally, are especially vulnerable.''

The rupiah weakened 2.3 percent to 9,090 against the dollar yesterday, taking the weekly loss to 2.9 percent, the biggest since the five-day period ended May 19, 2006, according to data compiled by Bloomberg. The peso dropped 1.2 percent to 46.565, according to Tullett Prebon Plc, the world's second-largest inter-dealer broker.

An increase in interest rates by New Zealand's central bank and the European Central Bank this week raised speculation global borrowing costs will need to rise to temper growth and inflation.

Futures traders reduced bets the Federal Reserve will cut interest rates by year-end to 10 percent from 38 percent at the end of last month, sending yields on U.S. Treasuries to the highest since July last year.

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June 11 (Bloomberg) -- Japan's economy expanded more than the government initially reported in the first quarter after better-than-expected spending by companies.

The world's second-largest economy grew at an annual 3.3 percent rate in the three months ended March 31, the Cabinet Office said in Tokyo today, faster than the 2.4 percent preliminary number. The median estimate of 27 economists surveyed by Bloomberg News was for 3.2 percent.

Today's report adds to evidence the economy will keep expanding even as growth slows in the U.S., Japan's largest export market. Machinery orders rose for the first time in three months in April, a report showed last week, indicating business investment will keep driving growth.

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June 15 (Bloomberg) -- Spending on services in Japan rose at the fastest pace in six months in April, signaling consumers will help drive growth in the world's second-largest economy.

The tertiary index, a gauge of money spent on phone calls, leisure and shopping, climbed 1.7 percent from March, the Trade Ministry said in Tokyo today. The median estimate of 37 economists surveyed by Bloomberg News was for a 1.5 percent gain.

The report indicates consumer spending, which accounts for more than half of the economy, may accelerate after slowing last quarter. It may also strengthen the Bank of Japan's argument that the economy's expansion will be sustained, allowing it to raise interest rates, the lowest among industrialized countries.

``We're seeing more and more evidence that consumer spending is gaining strength,'' Naoki Iizuka, a senior economist at Mizuho Securities Co. in Tokyo, said before the report. ``Spending on leisure has been strong so we can probably count on consumption exceeding expectations this quarter.''

The central bank will keep the key overnight lending rate at 0.5 percent today, according to all 43 economists surveyed by Bloomberg News. Eleven of 17 economists surveyed earlier this month said the bank will raise rates in August, after its Tankan business survey and second-quarter economic growth figures.

The yen traded at 123.04 per dollar at 9 a.m. in Tokyo, from 122.99 before the report.

Consumers increased spending on travel before the Golden Week cluster of holidays in April and May, according to JTB Group, Japan's largest travel agency. Travelers spent more for a second year, the first back-to-back increase in five years.

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June 16 (Bloomberg) -- Japan's 10-year government bonds dropped for a fourth week, the longest losing streak since October, as global debt markets declined on concern inflation will accelerate.

The difference in yield between two- and 10-year securities widened on June 14 to the most since February after a slump in Treasuries pushed U.S. yields close to a five-year high. Japan's bonds also dropped after a government report this week showed the economy grew faster than initially estimated, led by consumer spending and stronger-than-expected business investment.

``The rise in Japanese bond yields this time was triggered by the advance in Treasury yields,'' said Mari Iwashita, a bond strategist in Tokyo at Daiwa Securities SMBC Co., the largest buyer at government debt sales. ``Some people anticipated the U.S. economy may slow, but the recent figures eased such a concern, signaling a soft-landing scenario. That has driven up U.S. Treasury yields and Japanese yields.''

The yield on Japan's 1.8 percent security due June 2017 gained 1.5 basis points this week to 1.915 percent, according to Japan Bond Trading Co., the nation's largest interdealer debt broker. The four-week slide of benchmark 10-year bonds was the longest since the period ended Oct. 20, 2006.

Ten-year bond futures for September yesterday gained 0.18 to 131.30 on the Tokyo Stock Exchange.

The spread between two- and 10-year yields widened to 88.1 basis points on June 14, the most since Feb. 21, according to data compiled by Bloomberg using compound yields. The gap between two- and 20-year yields expanded to 1.287 percentage points yesterday from 1.16 percentage points at the beginning of the month.
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June 15 – Bloomberg (Kathleen Chu): “Condominium prices in Tokyo and its surrounds jumped 20 percent in May from a year earlier as the number of units available for sale declined for a fifth-straight month, the Real Estate Economic Research Institute said.”
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June 21 (Bloomberg) -- Japan's export growth almost doubled in May, buoyed by shipments of cars and electronics to China and the European Union.

Exports rose 15.1 percent from a year earlier, compared with 8.2 percent in April, the Ministry of Finance said today in Tokyo. The gain beat economists' estimates, helping the trade surplus widen 9.3 percent to 389.5 billion yen ($3.2 billion).

Faster export growth and a recovery in spending by consumers at home will help sustain the economy's longest expansion in more than 60 years. Shipments to Europe rose at the quickest pace in nine months, helped by the yen's drop to a record against the euro, and exports to the U.S. rebounded after dropping for the first time in two years in April.

``Exports overall continue to be solid, carried by increased shipments to Asia and Europe, and the yen's weakness is no doubt a help,'' said Junko Nishioka, an economist at ABN Amro Securities Japan Ltd. ``The worst seems to be over in the U.S. and that's a good sign for Japan.''

The yen traded at 123.64 per dollar at 11:33 a.m. in Tokyo compared with 123.54 before the report was published. The surplus rose less than the 462.7 billion yen median estimate of 36 economists surveyed by Bloomberg News.

Imports climbed 15.5 percent to a record 6.18 trillion yen, the Finance Ministry said, as the weaker yen increased the cost of goods purchased from overseas. Economists predicted imports to rise 10.3 percent and exports to increase 11.8 percent.

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June 23 (Bloomberg) -- Japan's economic recovery will accelerate this year, causing the inflation to more than double, a Ministry of Finance official said.

``The economy is cruising at above potential and from now on inflation pressures will pick up,'' said Chikahisa Sumi, a director in the Financial Bureau of the Japanese Ministry of Finance, during a conference yesterday in New York.

The economy will grow 2.2 percent in 2007, the fastest since 1996, the MOF estimates. The general consumer price index will rise 0.5 percent this year, from 0.2 percent in 2006. Higher inflation may prompt the Bank of Japan to raise its benchmark borrowing cost above the current 0.5 percent, the lowest among major economies.

Japan's low rates are encouraging companies to refurbish factories and add capacity, fueling wage growth and inflation. Business investment surged 13.6 percent to a record in the first quarter from a year earlier, the Finance Ministry said on June 3. The jobless rate fell to 3.8 percent in April, the lowest level since 1998

The world's second-largest economy grew at an annual 3.3 percent rate in the first quarter. Consumer prices may have fallen 0.1 percent last month according to the median forecast of 32 economists in a Bloomberg forecast. It was unchanged in April.

The BOJ hasn't increased rates since it's 0.25 percent increase in February. Consumer prices rose 0.2 percent last year and fell 0.1 percent in 2005.
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June 28 (Bloomberg) -- Japan's industrial production unexpectedly dropped for a third month in May, the longest losing streak in almost two years, raising concern that the world's second-largest economy is slowing.

Production fell a seasonally adjusted 0.4 percent from a month earlier, the Ministry of Economy, Trade and Industry said in Tokyo today. The median estimate of 48 economists surveyed by Bloomberg News was for a 0.9 percent increase.

The decline my dissuade Bank of Japan Governor Toshihiko Fukui and his policy-making colleagues from raising interest rates in July. Fukui said this month that the bank needs more evidence of the economy's strength before it raises the key rate from 0.5 percent, the lowest among major economies.

``This probably obliges the Bank of Japan to be a bit more cautious on deciding the timing of raising rates,'' said Yoshiki Shinke, an economist at Dai-Ichi Life Research Institute in Tokyo. ``Output will recover in the third quarter as the U.S. economy shows more signs of a soft landing.''

Manufacturers anticipate production to rise 1.9 percent in June from a month earlier and 1.7 percent in July, the Trade Ministry said.

The yen fell as low as 123.37 per dollar and then recovered to 123.19 at 9:39 a.m. in Tokyo from 123.20 before the release. The yield on Japan's benchmark 10-year bond rose 1 basis point to 1.87 percent.

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June 29 (Bloomberg) -- Japan's consumer prices fell 0.1 percent in May, a pace of decline that's unlikely to deter the central bank from raising its benchmark interest rate, the lowest among major economies.

Consumer prices excluding fresh food decreased for a fourth month from a year ago, the statistics bureau said today in Tokyo. The drop matched the median estimate of 45 economists surveyed by Bloomberg News. Prices fell at the same rate in April and 0.3 percent in March, the steepest decline in two years.

Bank of Japan Governor Toshihiko Fukui said last month that price declines wouldn't necessarily prevent the bank from raising the key rate from 0.5 percent as long as it's confident about the prospects for economic growth. The jobless rate held at a nine- year low of 3.8 percent in May and household spending rose for a fifth month, separate reports showed.

``The data aren't likely to deter the Bank of Japan from raising interest rates,'' said Takuma Kurosawa, global markets treasurer at HSBC Bank in Tokyo. ``We could see a hike in August.''

The yen traded at 123.23 per dollar at 9:33 a.m. in Tokyo from 123.13 before the report was published. The yield on Japan's benchmark 10-year bond fell half a basis point to 1.905 percent.

Tokyo's core prices unexpectedly fell 0.1 percent in June, the first drop in three months. Price data for the capital is released a month ahead of the nationwide number and seen as an indicator of the direction of Japan's prices. Economists expected a 0.1 percent gain.
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June 29 (Bloomberg) -- The yen headed for the biggest quarterly loss against the dollar since 2001 after government reports showed falling consumer prices and slowing household spending.

The data fueled speculation the Bank of Japan will refrain from raising interest rates, encouraging investors to borrow Japan's currency to buy higher-yielding assets in so-called carry trades. The yen has declined 4.4 percent against the dollar this quarter, weakening against 10 of the world's most-active currencies.

``The data don't support the case for a rate hike in the August-September period,'' said Yuji Saito, head of the foreign- exchange sales department at Societe Generale SA in Tokyo. ``The yen is likely to be sold.''

Japan's currency traded at 123.22 per dollar at 10:08 a.m. in Tokyo. The yen was at 165.56 per euro and tumbled to a record low of 166.94 this month. It may fall to 123.60 versus the dollar and 166.20 per euro today, said Saito.

The yen has dropped 3.4 percent against the dollar this half, compared with a 2.9 percent gain in the year-earlier period. It has fallen 5.1 percent versus the euro, compared with 4.7 percent.

Tokyo core prices excluding food, an indicator of the outlook for inflation, fell 0.1 percent in June from a year earlier. Economists expected a 0.1 percent gain. Nationwide prices fell 0.1 percent in May, matching April's decline. Overall household spending rose a lower-than-expected 0.4 percent in May after a 1.1 percent increase in April.

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July 3 (Bloomberg) -- Asian stocks rose, lifting a regional benchmark to a record, on signs of increasing demand for exports, metals and crude oil.

Honda Motor Co. and Samsung Electronics Co. led gains after reports showed the pace of manufacturing in the U.S. and Europe is accelerating. BHP Billiton Ltd., the world's biggest mining company and Australia's No. 1 oil explorer, advanced to an all- time high.

``The manufacturing numbers gave the market the whiff of assurance it was looking for,'' said Leslie Phang, who helps manage $1 billion at Commonwealth Private Bank in Singapore. ``Things are chugging along nicely.''

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July 7 (Bloomberg) -- Thailand's baht held near the strongest in a decade as overseas investors increased purchases of the nation's stocks.

The baht had the biggest weekly gain since January after rising through 34 per dollar on July 5 for the first time since the Asian financial crisis of 1997. A break of 36 prompted the government on Dec. 18 to impose restrictions on capital inflows, a move that sparked a 3.2 percent decline in the currency that week. Bank of Thailand Governor Tarisa Watanagase on July 5 said the bank was ``working'' to curb the advance.

``We have seen a pretty decent pick-up in foreign equity inflows,'' said Craig Chan, Lehman Brothers Holdings Inc.'s Asian currency strategist in Hong Kong. ``If the currency is consistently appreciating, and it becomes rapid, there is some risk of intervention.''

The baht was at 34.03 per dollar in onshore trading yesterday, taking gains for the week to 1.5 percent, the most since the five days ended Jan. 19. It rose as high as 33.97 on July 5, according to data compiled by Bloomberg.

The baht is the best-performer over the past month among 10 of the most-active currencies in Asia.

Capital controls in December were aimed at stemming a 15 percent gain in the baht in 2006 and created a two-tier onshore and offshore currency market. In March, curbs were lifted on foreign investment in baht-denominated bonds, mutual and property funds, as long as they were hedged.

Overseas investors purchased $511 million more in Thai stocks than they sold in the three days through to July 4, compared with net sales of $5 million in the same period last week. They bought a net $247 million on July 3, the most since April 5, 2006.

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July 9 (Bloomberg) -- Japan's machinery orders, a key indicator of corporate spending plans, rose at triple the pace economists predicted, reinforcing expectations the central bank will raise interest rates as soon as next month.

Orders climbed a seasonally adjusted 5.9 percent in May from the previous month, the Cabinet Office said in Tokyo today, a second monthly gain. The median estimate of 32 economists surveyed by Bloomberg News was for 1.9 percent.

Manufacturing equipment orders rose at the fastest pace in almost a year, signaling industrial production is likely to recover. Two Bank of Japan policy makers last week said keeping borrowing costs, the lowest among major economies, unchanged for too long could hurt economic growth in the long run.

``It was a surprise to see a strong machinery orders report and it signals we can count on a rebound in production,'' said Yoshimasa Maruyama, an economist at BNP Paribas Securities Japan Ltd. in Tokyo. ``This gives the BOJ one less thing to worry about and we expect them to raise rates in August.''

The yield on Japan's 10-year bond rose 2 basis points to 1.95 percent, the highest in three weeks, at 12:41 p.m. in Tokyo. The Nikkei 225 Stock Average climbed 0.6 percent, led by machinery makers Komatsu Ltd. and Murata Manufacturing Co.

Manufacturing orders surged 15.3 percent, the first increase in four months and the biggest in almost a year, the Cabinet Office said. Non-manufacturing orders fell 0.8 percent after climbing 10.5 percent the previous month.

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July 12 (Bloomberg) -- The Bank of Japan voted 8-1 to keep its benchmark interest rate unchanged as it waits for more proof that economic growth will be sustained and inflation will take hold. Board member Atsushi Mizuno opposed the decision.

Governor Toshihiko Fukui and his policy board colleagues held the key overnight lending rate at 0.5 percent at a two-day meeting that ended today, the central bank said in Tokyo.

Policy makers are confident in their outlook for the economy, though they want to examine more data before increasing borrowing costs, Fukui said. The Bank of Japan will probably raise the key rate, the lowest among major economies, next month, according to economists and investors.

``Governor Fukui's commitment to raising interest rates will remain firm,'' said Yasunari Ueno, chief market economist at Mizuho Securities Japan Co. ``Any proposals for a rate hike support expectations of an August move.''

The yen traded at 122.01 per dollar at 5:19 p.m. in Tokyo compared with 122.21 before the announcement. The yield on Japan's 10-year bond rose 2 basis points to 1.9 percent.

``There's no change in our expectations that the economy will continue this lasting growth,'' Fukui said at a news briefing. Second-quarter gross domestic product may be a ``bit weaker than the first quarter,'' though that won't determine the outcome of the August policy meeting, he said.

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July 24 (Bloomberg) -- Samsung Heavy Industries Co., the world's second-largest shipyard, reported record profit and Daewoo Shipbuilding & Marine Engineering Co., the third-biggest, set an all-time high for orders on booming demand for vessels.

Samsung Heavy said today that net income in the April-June quarter more than quadrupled on contracts for oil and gas tankers. Daewoo Shipbuilding said contracts this month have reached $4 billion, an industry record. Both companies are based in Seoul.

Shipyards in South Korea, the world's biggest shipbuilding country, will probably report all-time high earnings this year as they book contracts at record prices. A.P. Moeller-Maersk A/S, the world's largest shipping line, and its peers have spent more on vessels for about five years to move more raw materials to China and take away finished goods to the U.S. and Europe.

``Earnings are looking good for shipyards and ship prices will probably remain at record levels,'' said Mo Jae Sung, who helps manage $1.6 billion at Hanwha Investment Trust Management Co. in Seoul. ``Samsung Heavy's announcement has raised expectations that earnings at others will also be very good. There are more new orders than what a lot of people had expected earlier this year.''

Shares of Daewoo Shipbuilding climbed as much as 3.8 percent to 62,200 won and traded at 51,500 won as of 12:31 p.m. in Seoul. Shares of Samsung Heavy rose as much as 2.8 percent to 52,300 won.

The two companies raised their targets for new contracts in 2007 by as much as 55 percent earlier this month because of the strong demand for vessels that can carry containers, coal and other products.
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The Morgan Stanley Capital International Asia Pacific Index added 0.9 percent to 161.36 as of 6:22 p.m. in Tokyo, having yesterday slid 0.4 percent from a high. All 10 of the measure's industry groups advanced.

The Nikkei 225 Stock Average added 0.2 percent to 18,002.03, while South Korea's Kospi index, which today touched 2,000 for the first time, was little changed. Other markets open for trading climbed, except Pakistan and the Philippines.

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TOKYO (AP) -- Japan's main Nikkei stock index plunged more than 2.5 percent during early trading Friday, following an overnight fall on Wall Street.

The Nikkei 225 index lost 450.88 points, or 2.55 percent on the Tokyo Stock Exchange, to 17,251.21 points about 20 minutes after the market opened.

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July 27 (Bloomberg) -- Asian stocks fell the most in four months, continuing a rout in global equities, on speculation a worsening U.S. housing slump will slow growth in the world's biggest economy and prompt investors to shun riskier assets.

Toyota Motor Co., the world's largest automaker by market value, fell to the lowest in more than two months, while Samsung Electronics Co., Asia's largest maker of mobile phones and chips, dropped for a fifth straight day. BHP Billiton Ltd. slid to a four-week low after metal prices declined.

``Shares here cannot avoid suffering from the worldwide slide,'' said Toshihiko Matsuno, an analyst at SMBC Friend Securities Co. in Tokyo. ``The risk aversion trend will increase.''

All 10 industry groups making up the Morgan Stanley Capital International Asia Pacific Index declined, sending the measure lower by 1.8 percent to 156.39 as of 9:16 a.m. in Tokyo, its biggest loss since March 14.

The Nikkei 225 Stock Average fell 2.6 percent to 17,244.30, set for its biggest drop since March 14. South Korea's Kospi lost more than 2 percent for a second day, after closing above 2,000 for the first time on July 25. Benchmarks tumbled more than 2 percent in Australia and New Zealand.

In the U.S., the Dow Jones Industrial Average and Standard & Poor's 500 Index fell the most since February, while the FTSE 100's biggest drop in four years led declines across Europe.

The Standard & Poor's 500 Index and the Dow Jones Industrial Average both tumbled 2.3 percent. That's their worst performance since Feb. 27, when a sell-off in China spread globally and wiped out $3.3 trillion of market value worldwide.

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July 31 (Bloomberg) -- Japan's household spending rose less than expected, as higher taxes, lower wages and a furor over lost pension records weighed on consumer sentiment.

Spending rose 0.1 percent from a year earlier, the statistics bureau said today in Tokyo, less than the 0.7 percent median estimate of 29 economists surveyed by Bloomberg News. The unemployment rate dropped to 3.7 percent in June, the lowest in nine years, from 3.8 percent in May.

Stalling consumer spending, which represents more than half of the economy, may be a drag on second-quarter growth. That may make it more difficult for the Bank of Japan to justify raising interest rates from 0.5 percent next month. The bank has said it expects improved corporate profits to flow through to households via wage increases.

``An August rate increase will be difficult,'' said Kiichi Murashima, an economist at Nikko Citigroup Ltd. in Tokyo. ``Consumption is weaker than the BOJ expected and is undercutting its scenario.''

The yen traded at 119.04 per dollar at 9:29 a.m. in Tokyo, from 119.15 before the reports were published.

Traders see a 47 percent chance of a rate increase next month, unchanged from yesterday, according to Credit Suisse Group calculations based on the exchange of interest payments.

Japan's consumers became the most pessimistic since December 2004 in June, and the Economy Watchers' Index, a gauge of domestic demand via a survey of people who deal directly with consumers, fell to the lowest level in two years.

The prospects of finding work are improving. The job-to- applicant ratio, which shows how many positions are on offer to a job seeker, rose to 1.07 in June from 1.06 a month earlier, the government said today. It was at 1.09, a 14-year high, in July last year.
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Aug. 1 (Bloomberg) -- Asian stocks slumped, extending a global equities rout, after Macquarie Bank Ltd. and Bear Stearns Cos. said funds may post losses as the U.S. subprime mortgage crisis spreads.

Macquarie, Australia's largest securities firm, fell the most in five years after saying investors in some of its funds may lose as much as 25 percent of their money. Bear Stearns Cos. blocked investors from pulling money out of a fund, sending U.S. share futures lower.

``Issues once specific to America are now flowing through to the rest of the world,'' said Hans Kunnen, who helps manage $117 billion at Colonial First State Global Asset Management in Sydney. ``People are nervous because Macquarie looks and smells a lot like the companies that have been affected by this in the U.S.''

Mizuho Financial Group Inc., Japan's second-biggest lender by assets, tumbled after saying first-quarter profit fell by half. Sony Corp. led declines among exporters on concern the U.S. housing rout will dent consumer spending.

The Morgan Stanley Capital International Asia Pacific Index declined 2.6 percent to 151.89 at 6:10 p.m. in Tokyo, set to close at its lowest since June 27. All Asian markets fell, except in Vietnam. Taiwan's Taiex Index plunged 4.3 percent, the biggest drop in the region. Australia's S&P/ASX 200 Index lost 3.3 percent, the most since Sept. 17, 2001.

Japan's Nikkei 225 Stock Average slid 2.2 percent to 16,870.98 while the Topix index lost 2.2 percent. Toshiba Corp. paced declines among suppliers to Apple Inc. amid speculation the company will cut production of its widely touted iPhone.

The yen strengthened today as the hedge fund losses and a slump in Asian stocks prompted investors to cut riskier investments paid for by loans in Japan. Traders reduced so- called carry trades, pushing up the yen versus the 16 most- active currencies.
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Aug. 7 (Bloomberg) -- Japan's economic growth probably slowed in the second quarter as higher taxes curbed consumer spending and exports slowed.

The world's second-largest economy expanded at a 0.9 percent annual rate in the three months ended June 30 from 3.3 percent in the first quarter, according to the median estimate of 27 economists surveyed by Bloomberg News. The Cabinet Office will release gross domestic product at 8:50 a.m. on Aug. 13.

The report will be the last main indicator of the economy's strength before the central bank begins its next meeting to decide whether to raise its key overnight rate from 0.5 percent, the lowest among industrialized nations. Governor Toshihiko Fukui said last month the report won't be critical for its decision ``even if the numbers are a bit weak.''

``Fukui has said he's prepared for a moderation,'' said David Cohen, director of Asia economic forecasting at Action Economics in Singapore. ``If GDP is consistent with the moderate growth that the BOJ has been talking about, and the financial- market turmoil cools down, I would expect them to raise rates.''

Expectations of a rate increase have rebounded since waning on July 27, when a global stock-market rout raised concern among investors that a worsening U.S. housing slump would slow growth in Japan's largest export market.
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Aug. 10 (Bloomberg) -- The Bank of Japan added 1 trillion yen ($8.5 billion) to the financial system and the Reserve Bank of Australia loaned A$4.95 billion ($4.2 billion), joining U.S. and European central banks in responding to a credit crunch.

The Japanese central bank's cash injection was the largest same-day operation since June 29, according to Bloomberg data. Australia's cash injection was the biggest since at least January 2003, according to the central bank's website.

The European Central Bank yesterday said it would provide unlimited cash as the biggest jump in the London interbank offered rate since June 2004 signaled banks are withholding funds as losses on debt linked to U.S. subprime mortgages widen. Paris-based BNP Paribas SA halted withdrawals from three funds because the French bank couldn't value their holdings.

``The U.S. and European central banks are trying to make people feel relieved by supplying liquidity, so the BOJ might need to take cooperative action,'' said Shin Nagai, head of the treasury department at ABN Amro Bank NV in Tokyo.

Japan's overnight call loan rates traded at about 0.525 percent after the operation, down from a four-week high of 0.545 percent earlier in the day, according to Tokyo Tanshi Co. It was 3.5 basis points higher than yesterday.

``We conducted a fund injection operation because overnight call loan rates stayed a bit high this morning,'' said a Bank of official at the financial markets department. ``It's part of our regular operations.''

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Aug. 10 (Bloomberg) -- Asian stocks slumped the most in five months as a widening credit crunch hurt prices of Macquarie Bank Ltd., Toyota Motor Corp. and Samsung Electronics Co.

Macquarie Bank led financial companies lower after BNP Paribas SA halted withdrawals from funds that owned U.S. subprime, or higher risk, home loans. Exporters such as Toyota and Samsung dropped on concern losses linked to mortgages will lead to tighter lending conditions and dent global economic growth.

Benchmarks in the region's eight biggest markets all slid as much as 2 percent after subprime mortgage contagion and hedge fund losses sent U.S. stocks to their worst drop for five months.

South Korea's Kospi index plunged 4.2 percent, the most in three years. Australia's S&P/ASX 200 Index tumbled 3.7 percent, its biggest decline since September 2001. The Straits Times Index in Singapore, where the government today said the economy grew at the fastest pace in two years, posted its fourth straight weekly drop, the longest streak in 14 months.

The Morgan Stanley Capital International Asia-Pacific Index lost 3.1 percent to 149.05 as of 7:26 p.m. in Tokyo, the biggest drop since March 5. The measure, down 7.7 percent from its July 24 peak, is poised for its third weekly decline, the longest losing streak for five months.

Japan's Nikkei 225 Stock Average dropped 2.4 percent to 16,764.09, the most since March 14, as all markets fell. BHP Billiton Ltd., the world's largest mining company, slid after metals prices retreated.

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HONG KONG (Reuters) - Asian stocks rose on Monday with financial shares such as Macquarie Bank recovering, after central banks around the world pumped billions of dollars into banking systems in an effort to ease a widening credit crisis.

In a rare statement of reassurance, the U.S. Federal Reserve said on Friday it would provide cash as needed to ensure U.S. markets functioned smoothly. It was the U.S. central bank's first such statement since the September 11, 2001 terror attacks.

"Central banks are moving to quell fears about the availability of credit and that's going to help support markets," said Choo Hee-yeop, deputy general manager of asset management strategy at Korea Investment and Securities.

By 0029 GMT, Tokyo's Nikkei average (Osaka:^N225 - News) was up 0.3 percent thanks to gains of 3.7 percent for electronics components maker Kyocera (Tokyo:6971.T - News) and 1.4 percent for drug maker Takeda Pharma (Tokyo:4502.T - News). Top bank Mitsubishi UFJ (Tokyo:8306.T - News) was steady.

"Investors will want to look at the European and U.S. markets for further clues on trade, as the recent equity selloff originated from overseas and the market lacks domestic trading factors," said Yutaka Miura, deputy manager of the equity information department at Shinko Securities.

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Globex in Chicago is up sharply:

S&P 500 SEP07 1464.00 +1300
E-MINI SEP07 1464.00 +1300
E-MINI DEC07 1475.25 B +1250
NSDQ100 SEP07 1945.50 B +1650
E-NASDAQ SEP07 1944.75 +1575

GLOBEX Prices as of 08/12/07 08:12 PM

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Aug. 13 (Bloomberg) -- Japan's economic growth slowed more than economists expected in the second quarter, making it less likely the central bank will raise interest rates next week after a global credit crunch.

The world's second-largest economy expanded at a 0.5 percent annualized rate in the three months ended June 30 from a revised 3.2 percent in the first quarter, the Cabinet Office said in Tokyo today. The median estimate of 27 economists surveyed by Bloomberg News was for 0.9 percent growth.

The report is the last main economic indicator before the central bank's Aug. 22-23 meeting to decide whether to raise the key overnight lending rate from 0.5 percent, the lowest among major economies. Investors already pared bets of a rate increase last week after global overnight interest rates surged because of rising losses linked to U.S. subprime mortgages, prompting central banks to inject cash into their financial systems.

``This won't encourage the Bank of Japan to go ahead with a rate hike in August, especially with the turmoil in the markets,'' said Takashi Omori, chief economist at UBS Securities Japan Ltd. in Tokyo. ``September is very likely, unless there is further turmoil.''

The yen traded at 118.30 per dollar at 12:02 p.m. in Tokyo, from 118.27 before the report. The yield on Japan's benchmark 10-year bond climbed half a basis point to 1.72 percent. The Nikkei 225 Stock Average rose 0.5 percent.

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Aug. 20 (Bloomberg) -- Japanese stocks advanced by the most in more than a year after the Federal Reserve unexpectedly cut the discount rate to ease credit, boosting stocks in the U.S. and Europe.

Canon Inc. and Mitsubishi Corp. climbed on reduced concern the U.S. economy, the world's largest, will slow. Mitsubishi UFJ Financial Group Inc. led gains by financial stocks.

``The rate cut was pretty effective in curtailing panic in the markets which have no direct link to the subprime loan problem,'' said Masayuki Kubota, who helps oversee $2.1 billion in assets at Daiwa SB Investments Ltd. in Tokyo. ``Global growth won't be hampered by the subprime issue.''

Indexes surged by the most since July 20, 2006. The Nikkei 225 Stock Average jumped 450.66, or 3 percent, to 15,724.34 as of 2:25 p.m. in Tokyo. The Topix index rose 56.70, or 3.8 percent, to 1,537.09.
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Aug. 21 (Bloomberg) -- Asian stocks rallied for a second day, rebounding after the worst week in 17 years, as share gains in the U.S. and Europe eased concern a global sell-off that erased more than $5.5 trillion of market value will resume.

Nintendo Co. and Hon Hai Precision Industry Co. led the region's exporters higher amid growing confidence the U.S. Federal Reserve will contain a credit crisis sparked by home- loan defaults in the world's biggest economy. The Dow Jones Industrial Average and Europe's Dow Jones Stoxx 600 Index both climbed for a second day yesterday.

``Gains in overseas markets will ease investor concern and prompt a short-term rally,'' said Terunobu Kinoshita, who helps manage $785 million at Fund Creation Co. in Tokyo. ``But people are not fully confident yet, so the market may remain volatile.''

The Morgan Stanley Capital International Asia-Pacific Index added 0.8 percent to 143.89 at 10:40 a.m. in Tokyo, adding to a 4.1 percent gain yesterday that was the regional benchmark's best one-day performance since March 2002. Last week's 8 percent slide marked the worst week since September 1990.

Japan's Nikkei 225 Stock Average climbed 1.1 percent to 15,910.56 and China's CSI 300 Index rose 0.9 percent, headed for a record. Benchmarks also advanced in South Korea, New Zealand and the Philippines, which was shut yesterday for a holiday.

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Aug. 22 (Bloomberg) -- Japan's trade surplus narrowed more than economists forecast as automobile exports cooled, heightening concern that growth in the world's second-largest economy may slow.

The surplus shrank 21.1 percent in July from a year earlier to 671.2 billion yen ($5.9 billion), the first drop since January, the Finance Ministry said in Tokyo today. The median estimate of 35 economists surveyed by Bloomberg News was for 844 billion yen.

Export growth to the U.S. slowed to 1.3 percent, a fifth of the pace of the previous month, underlining concern that a slump in the U.S. housing market is damping demand for Japanese cars and electronics. The yen's 3.7 percent gain against the dollar this month could further depress sales overseas.

``With the U.S. housing loan problem, it's unavoidable that U.S. economic growth would be somewhat affected and the pace of Japan's export recovery will slow,'' said Azusa Kato, an economist at BNP Paribas Securities Japan Ltd. in Tokyo. ``The yen's strength will affect profits of Japanese exporters.''

Exports rose 11.7 percent to 7.06 trillion yen last month, less than the 13 percent expected by economists and 16 percent in June. Growth in shipments to Europe and China also slowed.

Imports climbed 16.9 percent to a record 6.39 trillion yen, as a weaker yen in July drove energy costs higher. July oil prices in yen terms were 8.7 percent more than the same month a year earlier and the highest since September. Japan imports virtually all of its oil.
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Aug. 27 (Bloomberg) -- Asian stocks advanced, set for the highest close in two weeks, after U.S. economic reports eased concern losses from subprime home loans will slow growth in the world's largest economy.

Honda Motor Co. and Hon Hai Precision Industry Co. led gains after sales of new homes in the U.S. increased and durable goods orders climbed more than economists estimated. Woolworths Ltd., Australia's biggest retailer, and China Construction Bank Corp., the nation's third-largest lender, rose after reporting higher profits.

``The market is going to be led by sentiment on the U.S. subprime situation and data confirming a stronger or weaker economic picture,'' said Jason Teh, who helps manage the equivalent of about $6.5 billion at Investors Mutual Ltd. in Sydney. ``The reassuring earnings results across the board may help combat some of the influence from the U.S.''

Hong Kong's Hang Seng Index advanced 2.9 percent to a record after Credit Suisse Group raised its recommendation on the market to ``overweight.'' BHP Billiton Ltd. climbed, tracking a rally in metals prices.

The Morgan Stanley Capital International Asia-Pacific Index added 1.1 percent to 149.81 as of 7:17 p.m. in Tokyo, set for its highest close since Aug. 9. It jumped 8.1 percent last week, the most since March 2002 and its first gain in five, since U.S. subprime, or higher risk, mortgage losses sparked a rout that erased more than $5.5 trillion of stock-market value worldwide.

The Nikkei 225 Stock Average rose 0.3 percent to 16,301.39 in Japan. Posco led South Korea's Kospi index higher on speculation steel prices will rise. Aluminum Corp. of China Ltd. soared to a record in Hong Kong trading to catch gains made by its stock in Shanghai. Benchmarks climbed elsewhere, except in Pakistan. The Philippines is closed for a holiday today.
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Sept. 1 (Bloomberg) -- Workers at Hyundai Motor Co., South Korea's biggest automaker, approved a possible strike to seek higher pay, threatening the company's bid to sell a record number of vehicles this year.

A total of 68.9 percent of the 40,995 union members voted in favor of the walkout plan, the union said today on its Web site. Union leaders can later decide when to begin a walkout.

Hyundai Motor has lost production of 23,406 vehicles worth 336.1 billion won ($358 million) this year because of workers' partial strikes. Further disruptions may threaten its plan to boost vehicle sales from domestic plants 6.5 percent this year.

``If the union goes ahead with the strike, that'll be a drag for the share's possible rebound,'' said Chae Hee Guen, an analyst at Kyobo Securities Co. in Seoul. ``Given the company has offered a bigger raise than Kia or other automakers, the strike may be shorter than last year,'' added Chae who rates Hyundai Motor ``buy''.

The union, South Korea's biggest by membership, is seeking an 8.9 percent increase in base pay and asking the Seoul-based company to distribute 30 percent of annual net profit as bonuses. The company has offered a 5.4 percent raise and annual bonuses equal to three months' salary.

The workers are also asking for changes to conditions, including raising the retirement age to 60 from 58. The union said on Aug. 28 that it would reject overtime on weekends and holidays starting this week until it reaches an agreement with management.
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Aug. 31 (Bloomberg) -- Japan's consumer prices declined for a sixth straight month in July, showing that the world's second- largest economy has yet to overcome a decade of deflation. Industrial production and household spending dropped.

Consumer prices excluding fresh food fell 0.1 percent from a year earlier, the government said in Tokyo today, matching the median estimate of economists. Factory output decreased 0.4 percent and household spending slipped 0.1 percent.

The reports bolstered speculation the Bank of Japan will delay raising interest rates until it can gauge the effects of the U.S. housing recession on growth in the nation's biggest export market. Expectations of a rate increase have fallen since losses on U.S. subprime mortgages caused corporate credit costs to jump, global stocks to plummet and the yen to surge.

``Given the market turmoil and its negative implications for Japan's production and exports'' the Bank of Japan will find it hard to ignore negative data on consumer spending, said Kiichi Murashima, an economist at Nikko Citigroup Ltd. in Tokyo.

The yen traded at 116.30 per dollar at 1:30 p.m. in Tokyo from 116.02 before the reports were published. The yield on Japan's 10-year bond rose 2 basis points to 1.585 percent after earlier declining as much as 2.5 basis points.

Central bank Governor Toshihiko Fukui said last week the bank will decide policy by examining economic data and financial-market moves.
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Sept. 10 (Bloomberg) -- Japan's economy contracted at almost twice the pace forecast by analysts in the second quarter, hardening speculation the central bank will refrain from raising interest rates this year.

The economy shrank at a 1.2 percent annual rate in the three months ended June 30 as business spending slumped, the Cabinet Office said in Tokyo today. The result was less than the government's initial estimate for a 0.5 percent expansion.

Bond yields fell to the lowest level since February last year and the benchmark Nikkei 225 stock average slumped more than 2 percent. Any rebound in growth depends on the severity of the housing recession in the U.S., Japan's biggest export market.

``A move by the Bank of Japan is out of the question,'' said Takehiro Sato, chief economist at Morgan Stanley Securities Japan Ltd. in Tokyo. ``A cloud is hanging over the domestic and global economy.''

The median forecast of 31 economists surveyed by Bloomberg News was for the economy to recede at a 0.7 percent annual pace.

The yield on the benchmark 10-year bond slid 8 basis points to 1.51 percent at 9:39 a.m. in Tokyo. The Nikkei 225 tumbled 2.7 percent. The yen traded at 112.92 per dollar from 113 before the report was published.

The economy contracted 0.3 percent from the previous quarter. The Cabinet Office revised the data to show that the last time the economy shrank was in the third quarter of 2006, when it fell 0.1 percent from the previous quarter.

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Sept. 12 (Bloomberg) -- Japanese companies paid more for energy and raw materials in August, prompting Nissin Food Products Co. and Ricoh Co. to pass on higher costs to customers.

The wholesale price index climbed 1.9 percent from a year earlier, extending 3 1/2 years of gains and following a revised 2.2 percent advance in July, the Bank of Japan said in Tokyo today. That was in line with the 1.8 percent median forecast in a Bloomberg News survey of 35 economists.

The report suggests Japan's consumer price index, which has declined for six consecutive months, may start to post gains as households pay more for everything from food to stationery. Nissin Food said last week it will increase noodle prices for the first time since 1990 because of surging wheat costs, and Ricoh said it will charge more for photocopy paper.

``Retail prices are gradually beginning to reflect the increased cost to companies'' of raw materials, Yoshimasa Maruyama, a senior economist at BNP Paribas in Tokyo, said before the report was released. ``Momentum for consumer prices to show positive gains is building in the economy.''

The yen traded at 114.13 per dollar at 8:56 a.m. in Tokyo from 114.22 before the report was released.

Rising producer prices aren't likely to alter expectations among investors and economists that the Bank of Japan will keep interest rates unchanged next week, as policy makers watch whether financial market turmoil damps global economic growth.

Investors see a 1 percent chance the central bank will raise the benchmark overnight lending rate from 0.5 percent when the bank's board conclude their two-day meeting on Sept. 19, according to Credit Suisse Group calculations based on interest- rate swaps.
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