[B]Chinese Yuan Pares Back Against US Dollar, Markets Pummeled In Session[/B]
The Chinese yuan pulled back significantly against the US dollar, while making further ground against the Euro and British pound as markets in Asia were hammered following losses in major US markets the day before. In New York, the yuan traded as high as 7.5880 against the US dollar. Notably Singapore?s Straits Times Index declined by an impressive 3.35 percent, second to Taiwan?s markets which plummeted more than 3.5 percent on the day. Hong Kong wasn?t left out as the benchmark Hang Seng Index dropped by 2.87 percent, shedding a whopping 632 points in the overnight session. Surprisingly, losses were minimized in the Shanghai exchange as the index lost a mere 16.68 points to close down 0.34 percent. Market sentiment was supported by the earnings release of Citic Securities Co. which saw first half year profits jump more than five times as surging speculation in China had boosted trading fees for the company. Net income rose 4.2 billion yuan from a mere 775.8 million in the year ago period. The results have the company pitted to take over as Asia?s biggest brokerage, a title held by Nomura Holdings inc.
[B]Ind[/B][B]ustrial Output In China Advances By 18 Percent[/B]
Output in the world?s fastest growing economy advanced at a healthy 18 percent pace for the month of July, coinciding with previous growth figures presented earlier in the quarter. However, the report, although optimistic, was less than consensus estimates of 19.4 percent and shows signs of slowing down. For the first time in three months, it seems that the recent repeal of export rebates may be cutting into the productivity of the overall sector. Manufacturers and major exporters now no longer have the luxury of what some deemed a governmental subsidy in boosting output. The findings are a welcomed release as government officials have made more than enough attempts at cooling the overheated economy. Now, it seems that newly implemented policies may be working their way through the economy, albeit at a slower pace than some would want.
[B]Retail Sales In Singapore Double Consensus [/B]
Sales grew more than double the pace of consensus estimates as consumers, benefiting from an improving economy, jumped on the buying bandwagon in the month of June. Everything from cars to furniture were purchased as consumers also attempted to take advantage of a lower tax rate. Recently, the government has enacted new policy, raising the tax on goods and services in the Singapore economy. For the record, retail sales for the month rose 14.4 percent from a year ago, improving upon a 1.9 percent revised gain for May. The report bodes well for an economy as forecasts for annualized growth were revised up recently by the country?s prime minister with stronger prospects continuing into next year.
[B]Officials Remain Optimistic Over WTO Ruling[/B]
Countering yesterday?s aggressive move by US State officials, Chinese representatives today responded by saying that China remains “optimistic” over the outcome of the WTO ruling as plenty of efforts have been made by the domestic government in curbing illegal practices. “The WTO expert panel will pay attention to China?s continued effort in strengthening intellectual property rights”, commented Zhang Zhicheng, publicity director, at an interview today.