[B]Chinese Yuan Accelerates Past 7.6000, Highest Since Revaluation[/B]
It seems that policy makers may now be giving into the overall pressure, realizing that an appreciation in the currency may help to alleviate economic problems that have emerged (notably consumer inflation). The sentiment has bolstered speculation in the Chinese yuan as rumors have emerged that government officials may be selling dollars in order to boost the appreciation against the US dollar. Here, a higher valued currency will help to alleviate accelerating consumer inflation which is running at a 3.3 percent clip in the world?s fastest growing economy. As a result, the Chinese yuan was able to move past the 7.6000 for the first time since the revaluation decision was announced back in July of 2005, gaining to 7.5944 against the dollar and rising 9 percent since the fix was ditched for a more flexible trading currency. Incidentally, the move is also being made, its seems in order to cut down on a highly publicized trade surplus and adjustments in creating China?s new mega fund. The trade surplus has climbed to $22.5 billion in the month of May, a 73 percent improvement.
[B]Singapore[/B][B] Manfacturing Accelerates, Exports Rebound[/B]
Manufacturing in Singapore accelerated in the month of June as a rebound in export orders helped to support the sector. According to the Singapore Institute of Purchasing and Material Management, the index results were higher by 2.3 points to 52.3 compared to last month?s figures. As a result, the survey continues to support advancement in the economy, one that had been questioned as it seemed that softer electronics exports were weighing heavily on expected growth. Incidentally, the electronics sector improved handsomely on the month, as the survey advanced to a 53.1 reading, 2 points higher than the previous months. For the record, both subindexes also improved as the growth in export orders vaulted 5.1 points higher. The news couldn?t help the Singapore dollar, however, as speculation continues to see weakness in the US, a major trade partner with the Singapore country. As a result, the Singapore dollar was softer in New York, trading lower at 1.5238.
[B]Retail Sales In Hong Kong Advance In May[/B]
Surging in the month of May, retail sales in the Hong Kong economy vaulted higher by 10.2 percent, subsequent to a revised reading of the month prior to 3.4 percent according to government reports. The actual value figure was higher against consensus estimates which pitted the report to rise by 7.6 percent. Leading the surge were improvements in travel as the country saw a surge of tourism in the month, attributed to summer travel. Purchases in clothing, jewelry and cosmetics also helped the gain, lending confirmation that the Hong Kong economy continues to grow and partially benefit from trade and travel from the mainland. As a result, the HKD appreciated against the US dollar in New York, rising to 7.8130 into the close.
[B]Regional Markets Rocket Higher[/B]
Asian markets were bolstered through the overnight as the Singapore and Hong Kong stock markets ripped higher. Singapore?s stock market was able to gain for the fourth straight day, led by development companies headed by City Developments. With real estate still a prime investment in the country, higher end developers are sure to continue in reaping the benefits. As a result, with City Development shares higher by 40 cents at S$17.50, the Straits Times index gained 19.09 poinst to close at 3569.43. Hong Kong shares subsequently move higher to close at a record as speculation grew of mainland investor participation. The Hang Seng Index closed higher by 378.41 points to 22,151.14, higher by 1.7 percent on the day.