Asia-Pacific Markets Trim Losses Weekly Central Bank Offensive

Asia-Pacific markets ended the week ended Friday, 16 September 2011, slightly lower, trimming, most of the losses recorded in the first couple two days the last session easing concerns about the debt crisis of the leaders on signs of ‘ euro have acted together to limit the damage of the crisis of the national debt.

Sense of risk steadily over the last two sessions after the European Central Bank announced it would increase dollar liquidity to banks to try to resolve the crisis of sovereign debt and Angela Merkel and French President Nicolas Sarkozy has promised that ‘they would help Greece avoid a debt default.

In Frankfurt on Thursday, the European Central Bank, together with the Federal Reserve, Bank of England, Bank of Japan, the European Central Bank and the Swiss central bank announced to work together to inject additional liquidity to banks in a $ in front to a shortage of U.S. currency. Some European banks have recently found themselves in debt problems in U.S. dollars, as the financing of the United States that normally lend to them have become reluctant to do so because of fear of contagion from the euro zone debt crisis.

Five major central banks in joint planning to do three between October and December to offer unlimited dollar funds to commercial banks three months to prevent money markets from seizing up in the wake of the crisis of sovereign debt in Europe. The European Central Bank website noted that these will all take the form of repurchase agreements against collateral eligible and will be conducted as fixed rate tenders, all.

The support of France and Germany to Greece to be in the euro area in a teleconference Wednesday also underpinned the feelings of risk. German Chancellor Angela Merkel and French President Nicolas Sarkozy promised in an emergency teleconference on Wednesday night that they would help Greece avoid a debt default.

Week of the market began to sour tone of surprise next to the difference between the top economist at the German Central Bank, last Friday, and amid anxiety that the prospects for world economic growth will deteriorate, if possible debt default European sovereign eventuated. Rumors that Greece would be added to the boredom of default. At the same time, unaware of the U.S. President, U.S. $ 447 billion package of jobs to boost the U.S. and the world economy is also depressed demand for riskier equities and commodities.

Fears spread debt default in Athens, Greece announced that it had enough money to run until next month, highlights the need for countries to qualify for the next installment of its ongoing rescue. International lenders in Greece last week threatened to hold the sixth pay around € bailout 8000000000 due to its repeated fiscal slippages.

The market fears, however, stabilized a little on Tuesday after the Financial Times reported that China was in talks with Italy due to higher purchases of government bonds, helping one of the largest government debt d Europe.

But the positive enthusiasm died on Wednesday, is the latent fear that Europe is sliding into another crisis in the banking sector after Moody’s cut its rating of the French Crédit Agricole SA and Societe Generale on Wednesday, citing their previous greek exposure to debt.

Sentiment continued to be hammered after cutting forecasts Asian Development Bank (ADB), the growth in the Asian region. ADB lowers growth forecast for 2011 and 2012, the developing countries of Asia, the Asian Development Outlook 2011 Update, published on Wednesday in the middle of the continuous care of the weakness of external demand for its main trading partners. ADB-cut full-year forecast of 7.5% 7.8% seen in April. The 2012 should decline slightly to 7.5% 7.7% previously.

In addition, regional exchanges rebounded in the last two sessions on concern the relaxation of the debt crisis of the European Union, five major central banks during the night have decided to jointly offer dollars to help cash-strapped entities financial Europe.

Back to the countries:

In China, the Chinese markets continued to mainland stock closed series for the third consecutive week with the Shanghai Composite Index down 0.62% this week to close at 2482.34 points. The Shenzhen index dropped 0.13 percent this week to close at 10,878.23 points.

The market turnover declined this week, with an average value of daily transactions recorded 53080000000 yuan Shanghai Composite Index declined by 3.34 billion yuan over the previous week, as investors retreated to a secondary activity of liquidity closely in the domestic banking system, after the central bank expanded the number of banks are held in reserve for margin deposits and renewed fears that the central government can take the tougher steps in the results of the central bank pointed to increased expectations inflation among residents and reduce confidence in the banks, the Chinese economy.

Liquidity crisis fears arose fund 70 billion yuan of medium and small banks are released by the central bank on Thursday, the rule of the new ratio of the reserve required. According to industry experts, the effect of margin deposit requirements of banks on small and medium enterprises should be 3-4 times greater than for large banks.

Bank of China announced Thursday that the study of urban residents 49.6% of respondents expected consumer prices to rise further in the fourth quarter, 4.1 percentage points higher than the price prospects in the previous survey. In independent research, the central bank said the banker’s confidence index in the third quarter fell by 2.1 percentage points higher than last quarter, 54.9% due to prudent macroeconomic in China.

China stock markets recovered some losses on Friday after August, foreign direct investment showed the companies were still running on the ground. Ministry of Commerce said in a statement Thursday that foreign direct investment in China grew by 11.1% to U.S. $ 8.45 billion a year earlier in August. Foreign investment grew by 19.8% in July. First eight months of the year, investments grew by 17.7% to U.S. $ 77.63 billion.

Australia, the benchmark indices continued to move downward for the second consecutive week, with the benchmark All Ordinaries index lost 1.11% and closed at 5,153.20 while the S & P/ASX20 washed 1.08% to close 4,0710.70 .

The market has suffered heavy losses on Monday and Wednesday, as risk aversion sell-off in the middle fear for the debt crisis of the euro area and more signs of slowing global growth. But the market pared losses in recent sessions bargain hunting emerged on positive news for resolving sovereign debt crises.

In New Zealand, swayed by the New Zealand region between red and green all week so uncertain global environment kept under control the national index. Investors remained skeptical about the developments in the Euro, alternating trade in risky assets. Weekend gains of the benchmark index came on the back of a promise made by central banks led by the European Central Bank and the Federal Reserve to provide funds to lenders in Europe. NZX 50 closed on Friday 16 Septembre 2011 to 3292.68, up 20.18 points, or 0.6% over the previous close but down almost 1% during the week. The index closed Friday at 3323.93. The index was nearly 2% in August.

During the week, RBNZ Bollard kept the benchmark interest rates to historic lows, and said it would keep the OCR on hold if the global financial situation is deteriorating and has a serious impact on the economy of New Zealand. If things calm down and local lenders are able to borrow money on international money markets and debt problems seep into Asia Europe, Bollard said he expects to start hiking in the coming year. Meanwhile, the New Zealand dollar headed for a weekly gain, after falling earlier this month.

Thailand joined the stock market into the red for four of the five trading days this week that the global pessimism seeped into Asian markets weigh on emotions. Canadian stocks began to slide since Monday, and fell to its lowest level in nearly 11 weeks on Wednesday. The benchmark SET ended Friday, September 16, 2011 at 1033.34, lower by 2.87 points or 0.28% over the previous close, but plunged more than 2.7% during the week. Set of indices of Thailand ended last week at 1062.37.

Meanwhile, the Thai baht fell to its lowest level in more than two months against the dollar. The recent weakness of the Thai baht has not yet, because it moves in line with regional currencies, the central bank official said. Risk-averse investors have moved in dollars because of renewed concerns about the debt problems of Greece, he added.

Japan’s benchmark Nikkei took its weekly gain of 1.45%, after 2.4% the week before the collapse, as investors bought shares battered recently plunged into the view that these are excessive valuation comparable companies. In the meantime to stop the yen’s appreciation has also increased the risk sentiment for stocks.

India, the Indian stock market has continued to be winning streak of the third week in a row, the Bombay Stock Exchange Sensex has recorded a reference weekly gain of 0.4%. Domestic low-cut reference point on Monday and Tuesday after grim manufacturing data and a weak global cues. However, as a series of company-specific positive news helped some of the major post-timers to get healthy for the end of the previous week. Market higher than the cut end of the previous week, as foreign institutional investors (FIIs) still net buyers in the Indian market. The market rates of interest rate hikes by the RBI and the price of gasoline rising, thereby closing the week higher.

Other Scholarships Asia-Pacific, most regional stock markets end the week on red background, with the Singapore Strait Times Index fell 1.3% to 3292.68, Malaysia KLCI lost 2.6% to 1430.93 to Hong Kong Hang Seng index lost 2.1% to 19,455.31, and Taiwan TAIEX Cast 7577.40 0.44%, while South Korea’s Kospi rose 1.5% to 1840.10.

Weakness ahead

The nervousness of the market on the European debt crisis subsided a bit after the final stage of central banks to support European banks, but we believe that the action is not a solution to the euro area and will probably a temporary effect.

Five major central banks offered a dollar liquidity to European banks fear that Greece has not met its financial obligations towards the EU, the Greek official default. Some European banks have recently found themselves in debt problems in U.S. dollars, as the financing of the United States that normally lend to them have become reluctant to do so because of fear of contagion from the euro zone debt crisis.

Investors are looking for concrete action or statement that could mean a new chapter in the mitigation of sovereign debt crisis engulfs Greece. In the next week the market to find the direction of the results of a major economic events, as the Fed Feeling Eurozone ZEW German economic data from the U.S. housing market, and the highly anticipated FOMC statement.

Global markets are waiting to see the result of a two-day meeting of finance ministers from the euro zone in Poland to consider further steps to counter the deepening crisis in the eurozone sovereign debt. The meeting began on Friday, September 16, 2011, ends Saturday, September 17, 2011. U.S. The Treasury secretary, Timothy Geithner, has also flown in the two-day meeting of finance ministers.

Investors looking for signs that policy makers are prepared to adopt measures to ensure the implementation of the July 21, 2011 the Heads of State to improve the power of the European Financial Stability Fund (EFSF), and to provide a second rescue plan for Greece.

Federal Reserve policy makers must also collect a lot of attention next week, gather for a day or two to be held on Tuesday and Wednesday. Market participants want to see the results of the Federal Open Market Committee in the United States, because it can give no hint of monetary stimulus. Among the options that the Fed may also consider a second round of quantitative easing, or QE3, Operation Twist to buy long term securities sold short-term ways to reduce long-term yields and reduce the rate of excess reserves held by banks the Fed to increase the monetary aggregates.

Also find information to be posted on Tuesday, potentially providing insight into the American economy.

The Japanese government on Tuesday held a special session of the diet of a new Prime Minister, Yoshihiko Noda his first policy speech as the supreme head of the country. Noda is expected to pledge during the speech, is committed to reconstruction efforts following the March 11 earthquake and tsunami, and the work includes the ongoing nuclear crisis at the plant in Fukushima Daiichi.


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