Asia Archives - Page 2 of 83

16Oct

By TheGreenZoneNo Comments

Asia, Market, World

Due to unfavorable global signals, shares may begin the day down.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,748.71 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,654.96 crore in the Indian equity market on 15 October 2024, provisional data showed. According to NSDL data, FPIs have sold shares worth over Rs 70303.50 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024. Most Asian stocks declined on Wednesday, primarily due to a weak outlook from ASML, a leading chipmaker. Cooling optimism about Chinese stimulus measures also contributed to the market's downturn. Regional markets followed Wall Street's lead, where a drop in chipmaking stocks pulled U.S. benchmarks from record highs. At the close in NYSE...

Can China’s lethargic economy be revived by the massive stimulus spending the government is planning?

15Oct

By TheGreenZoneNo Comments

Asia, China, Market

Can China’s lethargic economy be revived by the massive stimulus spending the government is planning?

China’s relentless economic growth used to be the marvel of the world. Oh, what a memory. The past couple of years have seen China contend with an economic slowdown amid colliding crises, many of which make it internationally unique. Consumer prices have been approaching deflationary territory, there’s an oversupply of housing, and youth unemployment has soared. Mounting pressure has forced the Chinese government to step in. Over the past month, Beijing has put forward a set of significant economic stimulus measures aimed at reviving China’s faltering economy. According to a research note by Deutsche Bank, this stimulus could potentially become “the largest in history” in nominal terms. But there’s still a lot we don’t know. So what kinds of measures that are ...

China’s stimulus plan targets its largest debt wall.

14Oct

By TheGreenZoneNo Comments

Asia, China

China’s stimulus plan targets its largest debt wall.

Chinese policymakers trying to fire up growth in the world’s second-largest economy appear intent on smashing through a wall of debt, opens new tab that poses a systemic financial risk and on not repeating past mistakes in delivering fiscal stimulus. That is some consolation for the fact that Beijing, so far, has mapped out only half of a plan. At a highly anticipated press conference on Saturday, the Ministry of Finance signaled it is ready to significantly boost spending but it declined to say by how much. The lack of a concrete number will disappoint those looking for quick fixes; Chinese benchmark stock indices including the Hang Seng (.HSI), opens new tab opened largely unmoved on Monday. To spur consumption, economists reckon the People’s Republic may need to spend up to 10 trill...

As the world’s oil supply surges, Pakistan’s gasoline situation worsens and another price increase is imminent: Report

12Oct

By TheGreenZoneNo Comments

Asia

As the world’s oil supply surges, Pakistan’s gasoline situation worsens and another price increase is imminent: Report

Pakistan is gearing up for another fuel price hike as the nation grapples with severe economic challenges. The impending rise in petrol and diesel prices comes in the wake of escalating global crude oil rates, as reported by The Tribune. The increase in petroleum prices is primarily driven by the soaring international market rates, exacerbated by the ongoing crisis in the Middle East. Pakistan’s reliance on imported oil, coupled with rampant smuggling and illegal trade, has left the country vulnerable, with limited control over its energy security, the report added. Over the past two weeks, international prices for petrol have surged by about $2.80 per barrel, while high-speed diesel (HSD) prices have spiked by approximately $7 per barrel, according to The Tribune. In response, t...

Here are four factors that make the cash-strapped economy of Pakistan the subject of international attention.

12Oct

By TheGreenZoneNo Comments

Asia, Market

Here are four factors that make the cash-strapped economy of Pakistan the subject of international attention.

Pakistan's economic crisis deepens as the International Monetary Fund (IMF), a global financial agency, eyes implementing policy reforms in the South-Asian nation. This is the latest development in Pakistan's economic crisis row as the nation tries to borrow its way out of its debt situation. IMF's row with Pakistan to improve its economic situation has been spread over several events. The nation aims to reduce expenditures, increase the tax-to-GDP ratio, tax non-traditional sectors like agriculture and real estate, limit subsidies, and transfer some fiscal responsibilities to provinces. The news agency PTI reported on Saturday, October 12, quoting a local news portal, The News International. It said that the International Monetary Fund (IMF) has focuse...

Some indications that the Indian economy may be slowing down

8Oct

By TheGreenZoneNo Comments

Asia, Market

Some indications that the Indian economy may be slowing down

The Indian economy is showing signs of slowing down, with high-frequency data released last week suggesting GDP growth could again come below 7 per cent in the Jul-Sep quarter of 2024-25. In Apr-Jun, India’s GDP growth had fallen to a five-quarter low of 6.7 per cent. A series of weak numbers emerged on the last day of September, with the central government's finances showing its capital expenditure was down 30 per cent on-year in August and 19.5 per cent in Apr-Aug. Core sector data, also released on Sep 30, showed output contracted by 1.8 per cent on year in August, the worst performance in 42 months. The numbers have continued to trend downwards: the manufacturing and services Purchasing Managers’ Index for September, while still in expansionary territory, fell to eight and 10-mo...

The European Union decides to levy taxes on electric cars made in China.

5Oct

By TheGreenZoneNo Comments

Asia, China, Market, World

The European Union decides to levy taxes on electric cars made in China.

The European Union on Friday voted to adopt definitive tariffs on China-made battery electric vehicles (BEVs). “Today, the European Commission’s proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from EU Member States for the adoption of tariffs,” the EU said in a statement. The EU first announced that it would slap higher tariffs on Chinese electric vehicle imports in June, on the grounds that they benefited “heavily from unfair subsidies” and posed a “threat of economic injury” to electric vehicle producers in Europe. Duties were also disclosed for individual companies, depending on the extent of their cooperation with the probe. Provisional duties were put in place from early Jul...

China’s Real Estate Market: An Analysis of the Boom and Bust

1Oct

By TheGreenZoneNo Comments

Asia, China, Market

China’s Real Estate Market: An Analysis of the Boom and Bust

China’s property sector is sinking. Once the economic backbone by which hundreds of million Chinese went from poverty to the middle class, the industry is now seeing slumps in the value of real estate that threaten not only household wealth and revenue for local governments, but also the overall growth of the Chinese economy, a key indicator of the Chinese Communist Party’s legitimacy and right to rule. Behemoth property developers such as Evergrande and Country Garden have gone under. In an attempt to mitigate the fallout, Chinese authorities last week rolled out stimulus measures designed to stabilize the market and to prevent the downward spiral that has seen the value of new homes sold drop by over 23 percent through August 2024. In the Unit...

What do Chinese people think of Xi Jinping’s concerns about the economy?

1Oct

By TheGreenZoneNo Comments

Asia, China, Market, World

What do Chinese people think of Xi Jinping’s concerns about the economy?

China’s sputtering economy has its worried leaders pulling out all the stops. They have unveiled stimulus measures, offered rare cash handouts, held a surprise meeting to kickstart growth and tried to shake up an ailing property market with a raft of decisions - they did all of this in the last week. On Monday, Xi himself spoke of "potential dangers" and being "well-prepared" to overcome grave challenges, which many believe was a reference to the economy. What is less clear is how the slowdown has affected ordinary Chinese people, whose expectations and frustrations are often heavily censored. But two new pieces of research offer some insight. The first, a survey of Chinese attitudes towards the economy, found that people were growing pessimistic and disillusioned about t...

China orders banks to begin lowering the interest rates on current mortgages.

30Sep

By TheGreenZoneNo Comments

Asia, China, Market

China orders banks to begin lowering the interest rates on current mortgages.

China's central bank has issued a directive for financial institutions to begin reducing interest rates on existing mortgages, marking a pivotal step in the country’s efforts to support its struggling economy. This announcement comes as part of broader measures aimed at stimulating growth amid ongoing economic challenges as detailed in a report by Reuters. The report further stated that, the decision to cut mortgage rates is expected to provide much-needed relief to millions of Chinese homeowners who have been grappling with rising living costs and a sluggish property market. The central bank's instruction is particularly timely, given that many families are facing financial strain due to the economic downturn worsened by the COVID-19 pandemic and subsequent lockdowns. According to ...

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