HONG KONG: Weaker economic growth and tepid price pressures in Asia will leave central banks in the region with few reasons to tighten policy next year - especially as U.S. rate hikes slow - unless a new bout of currency weakness forces them to do so.The U.S. Federal Reserve on Wednesday raised rates for the fourth time this year, as expected, but signaled a slower pace of hikes in 2019 than it previously projected.The Fed policy outlook is a major factor driving emerging currencies in Asia and a less aggressive rate outlook next year generally eases foreign exchange selling pressure in economies like Indonesia, Philippines and India. Central banks in these countries hiked rates repeatedly this year to mitigate portfolio outflows and moderate inflation.On Thursday, Bank of Japan kept monetary policy steady and central banks in Taiwan and Indonesia were expected to do the same at their respective meetings."What we forecast for Asia next year is based on the fact that the Fed is going to … [Read more...] about Asia’s central banks have almost no reasons to hike rates in 2019
Taiwan bank exchange rate
Asian markets mixed ahead of Bank of Japan policy statement (Associated Press) - July 31, 2018 - 12:17pm SINGAPORE — Asian markets were mixed on Tuesday with narrow trading ahead of a key statement by the Bank of Japan, which could indicate a tightening of its monetary policy. KEEPING SCORE: Japan's Nikkei 225 index dropped 0.3 percent to 22,476.72 and South Korea's Kospi was flat at 2,293.43. The Shanghai Composite index gained 0.1 percent to 2,872.92 and Hong Kong's Hang Seng index lost 0.3 percent to 28,650.72. Australia's S&P ASX 200 added 0.1 percent to 6,284.20. Shares fell in Indonesia but were higher in Taiwan and Singapore. WALL STREET: Technology stocks have tumbled for the third day in a row, leading U.S. indexes to close lower. Microsoft and Alphabet slumped Monday and Facebook, Twitter and Netflix have all fallen at least 20 percent from their record highs earlier this month. The S&P 500 dropped … [Read more...] about Asian markets mixed ahead of Bank of Japan policy statement
MANILA - It may well be like a typical romance: highs and lows, good times and bad, conflict then reconciliation. This seems to ring true between the Philippines and Taiwan, long-time friends less than 2 hours apart by plane whose shared ancestry and cultural similarities have made their links indelible, despite occasional irritants. A recent Taiwan public opinion poll captures this seeming love-hate relationship: while the Taiwanese rated the Philippines as their 2nd most hated country, next only to reclusive North Korea, they also voted the Philippines as “the 9th most-liked country,” the Taiwan Economic and Cultural Office (TECO) clarified to ABS-CBN News on Friday. PH 2nd most hated country in Taiwan: poll TECO did not explain the contradiction, but TECO Director Jerry Chuang said a single survey should not diminish strong ties between Manila and Taipei. “We should not let one public opinion survey cause unnecessary harm, if any, to the robust … [Read more...] about News Does Taiwan have a love-hate relationship with the Philippines?
Asian stocks slump after Fed signals faster rate hikes Youkyung Lee (Associated Press) - June 14, 2018 - 12:51pm SEOUL, South Korea — Asian stocks slumped Thursday after the U.S. Federal Reserve raised its key interest rate and said it would pick up the pace of future increases. South Korea's market benchmark tumbled 1.6 percent on the first trading day after a meeting of U.S. and North Korean leaders. KEEPING SCORE: Japan's Nikkei 225 fell 0.4 percent to 22,886.15 while South Korea's Kospi sank to 2,430.15. Hong Kong's Hang Seng index dropped 0.6 percent to 30,541.22. China's Shanghai Composite Index was down 0.3 percent to 3,041.22. Australia's S&P-ASX 200 slipped 0.2 percent to 6,012.80. Stocks in Taiwan, Singapore and other Southeast Asian markets also were lower. FED: The Fed's rate hike was its second this year. The American central bank raised its outlook for increases this year from three to four. Chairman … [Read more...] about Asian stocks slump after Fed signals faster rate hikes
It is an anxious time for Taiwan. China’s People’s Liberation Army is flying bombers around the island, openly simulating attacks on Taiwanese targets, and threatening that it won’t wait for reunification forever; it hopes to scare the island into submission beforehand. The worrisome thing is that Beijing’s Warrior President Xi Jinping seems to be talking himself into a fight. And PLA generals – flush with new weapons and hardware – might be egging him on. The dailyReport Must-reads from across Asia - directly to your inbox However, there are multiple reasons a war with Taiwan will not – or at least, should not – happen. A big, bloody risk If it came to a cross-strait showdown, China could certainly hammer Taiwan, and probably seize the island. But it would come at massive costs in lives, gold and goodwill. It is widely established that countries that start wars wildly underestimate the costs, but they all think it’ll be … [Read more...] about War with Taiwan would risk China’s place in the global community