Immediately after the Standard & Poor’s announced its historic decision to downgrade the U.S. last Friday, the official Chinese agency Xinhua published a scathing editorial condemning the wastefulness of Western countries and their “addiction to debt”.
“The U.S. government had to put up with the painful fact that the good old days when you can simply borrow enough money to get out of the paste, which is mixed already irretrievably lost”, the Chinese agency, pointing out that China is the largest foreign creditor of the United States. The unspoken implication behind the fierce criticism that China, unlike the U.S. is a country that understands “the general principle that everyone should live according to their income”. Indeed, at the end of 2010 declared gross debt of the central Chinese Government was only 17% of gross domestic product (GDP) of the country – the debt burden much lower than the U.S. (87%), Britain (80%) and Japan (210%). Late last year, S & P, and Moody’s raised the credit rating of China, S & P refer to the moderate leverage, strong exports and rosy outlook for the Chinese economy as a whole. The Chinese government is far from sober, and chaste borrower to be submitted. When assessing the actual debt situation in the country, rating agencies typically use an indicator known as the “general government debt.” This includes debt obligations of the central and local governments as well as those of social security funds. Debt burden in most developed countries like the U.S. is estimated in this way.
(more…)

The market participants reacted with mass sales of shares of the surprise decision to lower the credit rating of USA. Yesterday the indexes registered in the Middle East severely reduced and now scarlet Bay Asia. Against this background, oil prices sank by nearly 4% and gold literally shoots, going over 1700 dollars an ounce. The gold is rising by more than 52 dollars, or 3.2 per cent at the beginning of a new week, reaching hitherto unseen 1705 dollars an ounce. At the opposite pole is the lightest crude oil, whose price fell by 3.8 percent to 83.64 dollars per barrel. The Asian trading session began with mass sales. The main index in South Korea – KRX 100 drops by 5 percent and Japan’s Nikkei 225 fell 2.3%. In China and Hong Kong’s leading index – Shanghai Composite, respectively, and Hang Seng, erased a 3.7 and 4 per cent of its value.

The beginning of the week was hard for the Asian markets, as major indexes declined against the background of ongoing negotiations unsuccessfully to increase the U.S. debt ceiling and lowering the credit rating of Greece by the international rating agency Moody’s. The regional index MSCI Asia Pacific fell 1.1% to 137.52 points, about seven shares fell for every two appreciated. The Japanese Nikkei 225 lost 0.8 percent to 10 050.00 points after 3 consecutive sessions of growth, as shares of the largest carmaker in the world by market capitalization – Toyota Motor Corp., Its value fell by 1.4% to ¥ 3,290, while those of its competitors – Honda Motor Co., fell 1.6 percent to 3,185 yen. The shares of the Japanese largest public credit institution – Mitsubishi UFJ Financial Group Inc., Lost 2.2 percent of its value to 398 yen and those of next January – Sumitomo Mitsui Financial Group Inc., Fell 1.7 percent to 2 488 yen. The Chinese Shanghai SE Composite Index slid 3 percent to 2 688.75 points, shares of the manufacturer of locomotives, freight wagons and passenger CSR Corp. fell by 9.1% to 6.03 yuan after 2 days at least 36 people died and 200 were injured in an accident with a high speed train, damaged by lightning and hit him on the next train.
(more…)

The most Asian markets closed today’s session with a growth that led the regional index to nearly two-month peak, the shares of Chinese financial institutions have increased their value yesterday after the decision of the Central Bank to increase interest rates and those of the Japanese nuclear power fell. The Regional MSCI Asia Pacific Index added 0.04 percent to 137.48 points after wide fluctuations in the range of -0.4% to +2% and the ratio advancers/decliners shares in its components was 5/4. The Japanese Nikkei 225 lost 0.1 percent to 10 071.10 points, shares of industrial companies fell in value against the background of uncertainty about the extent to which production will decline because of the shortage of electricity by nuclear power plant closed. The shares of Toyota Motor Corp. value decreased by 0.7% to ¥ 3,400, while those of Honda Motor Co. lost 0.9 percent to 3,215 yen. Like the shares of most financial institutions, and those of Mitsubishi UFJ Financial Group rose 1 percent to 414 yen after Charles Dallara, managing director of International Institute of Finance, said that Greece’s creditors might want to risk a planned and controlled collapse of the country to be authorized debt crisis in the Balkan country. The shares of Kansai Electric Power Co. fell by 8.4% to ¥ 1,452, while those of Chubu Electric Power Co. – 7% to 1442 yen, because of fears that the recovery operation of nuclear reactors will be postponed by the government over his plans for stress testing of all Japanese nuclear power plant.
(more…)

The Asian markets are colored in green in the beginning of the week, as regional index recording its longest positive series for the last 6 months, shares of exporters in the region rose after an unexpectedly good news about increased U.S. production and evaded by the bankruptcy Greece. The Regional MSCI Asia Pacific Index gained 1.4 percent to 137.35 points, while stocks and the 10 component industry groups registered growth. This is the highest level index of 11 May and the longest winning streak of the daily growth of 4 January. The Japan’s Nikkei 225 rose 1% to 9 965.09 points, at one point passed the 10,000 points. The shares of the largest automaker in the world – Toyota Motor Corp., Its value increased by 1.5% to 3385 yen and those of its competitors – Honda Motor Co., Which sold more than 84% of its products abroad rose 3.5% to 3220 yen.
“The increase in production index shows that U.S. consumption is positive and signals that the economy will continue to recover by the end of the year,” said Thackeray Inaizumi, head of securities analysis at Mizuho Investors Securities Co. “The investment environment is changing, having fallen concerns about the slowdown of U.S. economy and the collapse of Greece,” he added.
(more…)

The shares of companies in most Asian markets registered a decline, but Hong Kong, South Korea and Australia have enjoyed increases in the indexes at the beginning of the new week. The regional index MSCI Asia Pacific lost 0.6 percent, which extended 6-week period of decline in which the index lost 5.3 percent in June from its value. This is the longest series of its losses since October 2008. The Japanese Nikkei 225 index lost 0.7 percent and reached 9 448.21 points, interrupting a 4-day rise, after it became clear that contracts for the manufacture of machinery fell for the first time in four months. The value of the shares of Toyota Motor Corp. fell 2.4 percent because of information that the largest car-maker in the world that its annual estimate of its net sales revenue was reduced by 31%. Securities of Japan Tobacco Inc. fell 3.5 percent after the company reported that sales of cigarettes in the country decreased by 38%. Hong Kong Hang Seng index rose 0.39 percent to 22 508.10 points. The shares of Sun Hung Kai Properties Ltd. declined in value by 1.1 percent, after Hong Kong ordered the buyers to pay higher down payment and increased barriers to foreign investors. “We expect the summer lull in the market,” said Arnut Van Rijn, chief investment officer at Robeco Hong Kong Ltd. In Taiwan Taiex lost 1.41 percent to 8 712.95 points. The South Korean KOSPI index rose 0.1% minimum to 2 048.74 points.
(more…)

The Asian markets ended today’s session mainly by a fall, which led the regional index to its lowest level for a week now. This is happening against the backdrop of slower growth in new jobs in the U.S., which raises concerns about the global economy recovers. The MSCI Asia Pacific lost 0.3 percent of its value to 133.59 points as against a share growth was over 3, registered a loss of value. The Japanese Nikkei 225 index lost 1.118 percent to 9 380.85 points, Tokyo Electric shares fell by 28% to 207 yen after the Asahi Shimbun newspaper quoted President Atsushi Saito TSE that Tepco must be restructured to follow the path of Japan Airlines Co., she applied for bankruptcy protection in 2010. The shares of Kansai Electric Power fell 8.9 percent, while those of Sony Corp. lost 3.2 percent to 2,062 yen. The stock exchanges in China and Taiwan only enjoyed growth as Shanghai SE Composite rose 0.84% ​​to 2 728.02 points and Taiwan TAIEX added 0.62 percent to 9 046.28 points. In Hong Kong Hang Seng fell 1.31% to 22 949.60 points. The picture in South Korea was mixed with the continuing trend for minor fluctuations, as KOSPI lost 0.03 percent to 2 113.47 points. In Australia the S & P / ASX 200 fell 0.31 percent to 4 569.10 points, while stocks of the largest Australian airline Qantas lost 3.7 percent of its value after the statement by the International Agency for Air Transport IATA, which reduced its forecast for profit in the industry this year. The Singapore’s FTSE Straits Times fell 0.99 percent to 3 114.41 points in Indonesia Jakarta Composite lost 0.26 percent to a level of 3 834.20 points.

The leading stock indexes in Asia-Pacific region began the new week with mixed movements. In the absence of significant economic news on the basis of market sentiment is the news about Greece and the news from U.S. by the end of last week. The regional index MSCI Asia Pacific added 0.2 percent to 135 points today, to trade the direction of change several times. The ratio advancers / decliners positions of the index today was five to four.
“The Exchange will continue correction since the index of leading indicators showed a deterioration in the U.S.. Market is waiting for confirmation of whether the U.S. economy is actually recovering, “said a media Yunghao Pu, head of UBS Wealth Management in Hong Kong.
Today in Tokyo the Nikkei 225 registered a decline of 0.2 percent to 9505 points, resulting in continued negative index series after recording three consecutive weekly retreats. In China’s CSI 300 slid 0.3 percent to 2 954.51 points. Today, the Chinese yuan set a new record after the central bank increased the reference rate for the third consecutive day, so speculation that begins a new cycle of appreciation of local currency. Decline recorded also the indexes in South Korea and Australia as KRX 100 fell by 0.2 per cent and the Australian S & P / ASX 200 – by 0.35 per cent. At the opposite end were even leading indices in Hong Kong and Taiwan, which added respectively 0.3 and 0.2 per cent.

The Asian trading session ends with downturn, a regional index lost earnings at the beginning of the session, after Japan announced economic downturn in the first quarter, a Gartner Inc said that the market for mobile Samsung Electronics Co has shrunk. The shares of Softbank Corp, The only representative for the iPhone of Apple Inc. in Japan, lost 2 percent of the stock exchange in Tokyo. Shares of Mitsubishi UFJ Financial Group Inc, the largest public credit institution in Japan decreased by 2.1%. Samsung did lose 1.5 percent of its market capitalization. The shares of the world’s leading mining company and largest oil producer in Australia, BHP Billiton Ltd rose 1.2 percent in Sydney after oil prices turned away and metals up. MSCI Asia Pacific Index fell 0.2 percent to 134.88 points, thereby losing gains from the beginning of the session. Last week, the index recorded a second consecutive weekly decline because of fears that anti-inflation policy of China may slow global economic growth and that the Fed is prepared to terminate the program for the purchase of assets worth 600 billion dollars, known as a program to increase liquidity.
“You can expect a further reduction in corporate profits in Japan after more than expected contraction in the national economy. Investors are still skeptical, expressing concern about increasing inflation and European debt crisis”, said Michio Tomi by Mitsubishi UFJ Asset Management Co.
(more…)

The week began with declines of stock markets in Asia, the main reason for which the problems of Greece and downgrade leading companies from Japan and South Korea by the agency Standard & Poor’s. Today, the regional index MSCI Asia Pacific is moving with a fall of 1.4 per cent to 134.25 points, which would found during the indicator to its lowest closing level since March 29th. The agency Standard & Poor’s downgraded the Japanese company Tokyo Electric Power, which is the operator of damaged nuclear power plant in Fukushima. Overall, the Japanese market outlook was lowered to requiring increased care. Tokyo Stock Exchange today, the Nikkei 225 fell 0.9 percent to 9558 points, while South Korea’s KRX 100 also retreated as to 4463 points. In China’s CSI 300 lost 0.9 per cent, while major indexes in Hong Kong and Taiwan retreated by 1.3 and 1 per cent.
“The problems of Greece worried markets because it is clear that the situation has not gotten his response,” said Nader Naeimi from AMP Capital Investors for Bloomberg. The global growth goes through lower growth, which is negative for Asian exporters as a whole, “explains the analyst.