Asia surfs into a calm holiday week but financial markets continue bubbling
International Trading
THE TECHNIQUE OF GIVING A GOOD MASSAGE
14 years ago
Saturday, September 25, 2010
, Posted by Usman Ali Minhas at 10:57 AM
This week witnessed a layback performance for Asian economies along with the lack of important fundamentals from major economies in the pacific on holidays across markets. Yet Asian financial markets attracted the attention once again after Japan intervened again.
The Reserve Bank of Australia released the September minutes, where Australian policy makers indicate that the Bank may increase the benchmark rates in upcoming period, if the nation's economy continued to expand at its projected pace or faster, as the Australian business sector is recovering and global demand is picking up.
Monetary policy makers, led by the governor of the Reserve Bank of Australia Mr. Glenn Stevens, kept the interest rate unchanged at 4.50% for the fourth consecutive month, as Mr. Stevens returned borrowing cost to their average levels after the past series of hikes when the rate was raised six times during seven meetings since early October.
In other news, the New Zealand Gross Domestic Product for second quarter missed forecasts with a sluggish 0.2% expansion compared to the pervious of 0.6 % revised to 0.5%, much below projections for 0.7%.
The Reserve Bank of New Zealand this month preserved the benchmark interest rate unchanged at 3.0% for the second consecutive month, as the economic recovery slowed due to the nation suffering from the worst earthquake in eight decades.
New Zealand shops and factories closed after the earthquake, which was the main reason behind the cut in power and damaged in more than 100,000 homes. Water and sewage lines were also destroyed in New Zealand's second largest city, reflecting the economy is likely to slow growth further during the third quarter before growth accelerates again on government spending and recovery from the earthquake, indicating that the Bank will leave the interest rate unchanged for the rest of the year to preserve the economy from relapse.
New Zealand's current account deficit widened to reach NZ$0.888 billion during the quarter ending June, compared with a previous surplus of NZ$0.176 billion, which was revised to NZ$0.159 billion.
Moreover, the current account deficit is expected to widen further during this period, as the recovering domestic demand draws in more imports and higher profits of Foreign-owned companies, while Mr. Alan indicated last week that the gab will expand, as companies start investing and consumers begin to build up debt.
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