Jun 9, 2013
Asia stocks rise; Nikkei Average rebounds Japanese stocks make a strong recovery following recent losses, while other markets are modestly higher as investors digest a set of poor economic data from China.
Hong Kong stocks rise, with banks higher LOS ANGELES (MarketWatch) -- Hong Kong stocks moved higher in early Monday trade, rising past lackluster Chinese economic data released over the weekend. The Hang Seng Index added 0.5% to 21,677.17, with the Hang Seng China Enterprises Index up 0.4%, while mainland Chinese bourses were closed until Thursday for a holiday. Financials were a strong spot after robust U.S. share gains Friday on the back of a better-than-expected May employment report. Industrial & Commercial Bank of China Ltd. climbed 1.2%, China Construction Bank Corp. and China Citic Bank Corp. rose 1.3% each, and Agricultural Bank of China Ltd. traded 0.6% higher. The property sector was mixed, meanwhile, with Sino Land Co. advancing 1.1%, but Hang Lung Properties Ltd. down 0.9%, and New World Development Co. dropping 0.5% after reports that the firm has regulatory permission to spin off its hotel assets into a trust. The broad advance came despite showing slowing growth in May across much of the Chinese economy, including a much more meager rise for exports than economists had forecast. Hong Kong's Monday gains came after solid losses the previous week, with the Hang Seng Index falling more than 3%.
Japan Is a Model, Not a Cautionary Tale, by Josephe Stiglitz. The New York Times: ALERT FGC BOLSA - FGC FINANCIAL MARKETS; June 09, 2013
FGC BOLSA- FGC FIN
Compiled: June 9, 2013 09:39:29 PM
OpinionatorJapan Is a Model, Not a Cautionary Tale
By JOSEPH E. STIGLITZ
Along many dimensions — greater income equality, longer life expectancy, lower unemployment, and greater investments in children’s education and health — Japan has done better than the United States.
Gold's strange 'bear market': Deutsche Bank opens gold vault in Singapore: GATA I THE GATA DISPATCH June 09, 2013.
Gold's strange 'bear market': Deutsche Bank opens gold vault in Singapore
By Clementine Wallop
The Wall Street Journal
Sunday, June 9, 2013
SINGAPORE -- Deutsche Bank is opening a vault in Singapore that can hold $9 billion of gold, as it hopes to tap rising demand for the precious metal in Asia amid a push by the city-state to burnish its image as a bullion-trading hub.
Singapore last year scrapped a goods-and-services tax on gold in a bid to help boost its share of global gold demand to 10-15% within a decade from around 2% in 2012 as it seeks to compete with more established bullion-trading centers.
"Gold has traditionally been stored in London, Zurich, and New York, but there is a serious shift in dynamics going on as the global financial crisis continues to evolve," Mark Smallwood, Deutsche Asset & Wealth Management's head of wealth planning in the Asia-Pacific region, told The Wall Street Journal on Friday.
Political and economic risk in Europe is keeping investors cautious, and demand for physical gold as a haven is strong, putting Singapore in a position to benefit from its reputation as a stable and safe place to store high-value assets.
"What we're seeing is customers looking at gold and being cognizant of the fact that when things go wrong, where you're storing the gold is extremely important," Mr. Smallwood said. "Risk factors for gold are increasing dramatically, and people want to store where they perceive it to be safe, which often will involve geographically diversifying that storage."
Deutsche Bank started accepting bullion into the new Singapore vault three or four weeks ago and is seeing strong demand from its customers for storage in the facility, he said.
The vault can hold up to 200 metric tons of gold, which is around the same volume as the central bank reserves of Belgium or the Philippines.
The vault is in the Singapore Freeport, a high-security facility, and is subleased from Malca-Amit, a company that specializes in storing and transporting diamonds and precious metals. Deutsche Bank also has vaults in London, Hong Kong, and Zurich.
Deutsche Bank is one of the world's biggest gold-dealing banks and is among those that set gold prices every day in London. The so-called fixings are used to determine spot prices worldwide, including in jewelry, and for sales from mining companies to refineries.
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Asian stocks opened higher on Monday with Japan leading gains following a better-than-expected gross domestic product (GDP) revision while a declining yen also helped the benchmark Nikkei index move out of last week's bear market territory.
The Nikkei surged over 3 percent in early trade, rebounding from its previous two-month low while South Korea's Kospi was flat. Australian and Chinese markets are shut on Monday for public holidays.
(Read More: Emerging Market Funds See Biggest Exodus Since 2011)
The Bank of Japan kicks off its two-day meeting on Monday and investors will be waiting to see if the central bank will take further steps to curb volatility in Japanese government bonds (JGBs).
|NIKKEI||Nikkei 225 Index||13328.24||450.71||3.50%|
|HSI||Hang Seng Index||21575.26||---||UNCH||0%|
|ASX 200||S&P/ASX 200||4737.70||-43.50||-0.91%|
|SHANGHAI||Shanghai Composite Index||2210.90||-31.21||-1.39%|
|CNBC 100||CNBC 100 ASIA IDX||6726.21||5.40||0.08%|
US Jobs Boost
A decent U.S. employment report late last week boosted Asia's rise appetite. Data on Friday showed the U.S. economy added 175,000 new jobs in May, indicating the economy was expanding modestly, but not enough to convince investors the Federal Reserve could pare back its bond-buying program soon.
Wall Street shares closed sharply higher on the closely-watched payrolls number, with all three major averages rallying over 1 percent each.
(Read More: Markets May Have Gone Too Far on Taper Talk: Plosser)
A revised reading of Japan's first-quarter real gross domestic product (GDP) jumped 1 percent from the previous quarter and rose over 4 percent annually. The results came in higher than market forecasts and confirms that Prime Minister Shinzo Abe's stimulus policies - dubbed "Abenomics" - are strengthening the economy.
Japan's benchmark index crossed they key 13,000 level on the news, after closing at a two-month low on Friday. A weakening yen also lent support. The currency moved off its previous two-month high of 95 per dollar to trade at the 98 handle in early Asia trade.
Automakers led the gains with Mitsubishi Motors and Mazda Motors up 6 percent each while banks also rose. Mizuho Financial and Nomura rose 4 percent each.
Further underpinning stock market gains was Japanese Prime Minister Shinzo Abe's dramatic plan to boost investment. Over the weekend, Abe said he would announce a major tax break around September to encourage companies to raise capital expenditure, part of the second phase of "Abenomics."
SoftBank shares rallied over 5 percent after the telco said that it was in talks with Deutsche Telekom over a possible deal for American carrier T-Mobile. The Japanese company is looking for alternatives to enter the U.S. wireless market if its deal with Sprint Nextel falls apart.
South Korean stocks were unable to track the Nikkei's strong gains but still managed to bounce off a Friday's eleven-week low of 1,923 points.
Market heavyweight Samsung Electronics slipped 0.5 percent, extending losses from its previous 6 percent loss.
Seoul's benchmark index is now trading well below it's 200-day simple moving average of 1,958. which indicates the market may be in a long-term downtrend. This may encourage some investors to bottom-feed and pick up sold-off stocks.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter
Nick McDonald provides an outlook for the week ahead on currency and equity markets. TWP June 09, 2013.
Nick McDonald provides an outlook for the week ahead on currency and equity markets:
Former C.I.A. Worker Says He Leaked U.S. Surveillance Data: The New York Times Global Update, June 09, 2013.
June 9, 2013
Compiled 20:45 GMT
Compiled 20:45 GMT
By BRIAN KNOWLTON
A British newspaper identified its source as Edward Snowden, a former C.I.A. employee who has worked at the National Security Agency as a contractor.
By BRIAN KNOWLTON
An outspoken critic of the government's electronic surveillance programs, Senator Mark Udall of Colorado, said on Sunday that he was not convinced that a program to collect huge amounts of information about Americans' phone calls had led to the foiling of any terror plots.
By CHRISTOPHER CLAREY
The 27-year-old Spaniard beat David Ferrer, his friend and compatriot, 6-3, 6-2, 6-3, on a dreary, drizzly afternoon.
Editorial | Sunday Observer
By DAVID C. UNGER
As fringe parties gain power, liberal democracy is in jeopardy on the Continent.
By DAVID M. HERSZENHORN and ANDREW ROTH
Russia's prosecution of low-level participants at protests seems to be a message to other ordinary Russians about taking part.
By JACKIE CALMES and STEVEN LEE MYERS
President Obama and President Xi Jinping of China ended two days of informal meetings, moving closer on pressuring a nuclear North Korea, but remaining divided over cyberespionage.
By PALKO KARASZ and MELISSA EDDY
Hungarians rushed to fill sandbags as the Danube spilled over its banks. The city was the latest victim of record floods in Central and Eastern Europe.