THE US-CHINA TRADE IMPASSE The deadlock is not about to be resolved any time soon. We have not heard all that much from the Chinese government directly but editorials from Chinese media are now giving us a sense of the way Beijing is viewing the current impasse. The People’s Daily wrote that “at no time will China forfeit the country's respect” while The Global Times said “the perception that China cannot bear it (a trade war) is a fantasy and misjudgment”. So what? That the debate is now being framed, not in purely economic terms, but in terms of respect and dignity will make a deal that much harder to reach. There is very little room when one is negotiating with dignity on the line. Trade talks have come back from the brink before, but given the perception of Beijing in Washington is worsening, and vice versa, few are predicting a rapid end to the trade war. What if talks fail: Expect a significant fallout that will impact the global economy. The … [Read more...] about Asian Insider May 13: What if trade talks fail?
KUALA LUMPUR: Finance Minister Lim Guan Eng is confident that Malaysia is on the right track to strengthen its economy and fiscal status by 2021, leading the way to regaining its position as an Asian Tiger. The government intends to reduce the current debt and liabilities of RM1.087 trillion or 80.3% of the GDP in the course of this period to 65% through the renegotiation of mega-projects such as the mass rapid transit. Soon after his appointment to one of the toughest jobs in the federal government, Lim announced that government debt and liabilities had exceeded RM1 trillion, a figure that fuelled market anxiety and raised the prospect of a credit-rating downgrade. The breakdown included federal government debt of RM686.8 billion or 50.8% of GDP and government guarantees of RM199.1 billion or 14.6% of GDP. “After a six-seven month effort by the government, the debts and liabilities were reduced to RM1.07 billion or a reduction of RM17 million. “But, from the aspect of a … [Read more...] about Malaysia on right track to regaining Asian Tiger status: Lim
SYDNEY: Asian share markets were subdued on Friday amid thin holiday trade although the dollar found support as investors pared expectations for a U.S. rate cut this year while oil prices loitered near one-month lows on oversupply fears.Australia's benchmark index was last up 0.2 percent, New Zealand shares were off 0.5 percent while South Korea's KOSPI slipped 0.3 percent. Trading volumes were light across Asia with markets in China and Japan still closed for holidays.Overnight on Wall Street, major indices gave up initial gains and closed in the red, weighed down by energy shares.World stocks have rallied hard this year - the S&P 500 has climbed more than 16 percent so far in 2019 - but further gains will be hard to come by, analysts at Capital Economics said."We are more downbeat on the outlook for the global economy. We forecast that GDP growth in advanced economies will slow from 2.2 percent in 2018 to just 1.0 percent in 2020," they said."As such, we are of the view that … [Read more...] about Asian markets calm as investors await US jobs report
HONG KONG: Hong Kong's economy grew at its slowest annual pace in nearly 10 years in the first quarter, an advance government estimate showed on Thursday (May 2), hit by a slowdown in exports and investment.The Asian financial centre has been buffeted by China's slowing economy and the U.S.-China trade war, along with cooling property prices and volatile stock markets.The economy grew 0.5 per cent in the January-March quarter from a year earlier, the weakest increase since the third quarter of 2009, compared with a revised 1.2 per cent pace of growth in the final quarter of 2018.This was the first time the government has released a preliminary reading on gross domestic product (GDP).On a quarterly basis, the economy expanded a seasonally adjusted 1.2 per cent after contracting a revised 0.5 per cent in the fourth quarter."Total exports of goods weakened further in the first quarter, similar to the situation in many other Asian economies," a government spokesman said in a statement. … [Read more...] about Hong Kong’s Q1 GDP growth slows to near decade low
SHANGHAI -- Asian stock markets edged up on Monday after surprising strong US first-quarter economic growth boosted the S&P 500 index to a record high, but gains were capped by caution over less upbeat aspects in the GDP report which pointed to some weakening ahead. Investors were also awaiting a meeting of the US Federal Reserve this week and Chinese factory data for further clues on policy direction in the world's biggest economies. MSCI's broadest index of Asia-Pacific shares outside Japan was up less than 0.1 percent, edging higher after posting its biggest weekly drop in more than a month last week. Australian shares were down 0.26 percent, while Seoul's KOSPI was up 0.4 percent. Japan's financial markets are closed for a long national holiday this week, but Nikkei 225 futures in Singapore were 0.72 percent higher. In contrast with weakness in Asian markets last week, Wall Street ended Friday on a high note following data showing US gross domestic product grew at a faster 3.2 … [Read more...] about News Asian shares rise on strong US GDP, eyes on Fed, China