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January 31, 2013 Sign up Forward Archive   Top Stories  U.S. economy takes surprising downturn in 4th quarter    Reuters The U.S. economy shrank at an annual rate of 0.1% in the fourth quarter, a result that surprised economists who had predicted 1% growth but reflected the effects of Hurricane Sandy and a government and private-sector spending pullback in anticipation of January's "fiscal cliff." It marked the first decline in GDP since the end of the recession that launched the ongoing economic malaise. Analysts believe, however, that the economy remains resilient, with fundamentals still basically sound. The Wall Street Journal (1/30) , Bloomberg (1/30)      U.S. Fed's asset buying might finally be paying off Analysts point to rising bond yields as evidence that the U.S. Federal Reserve's third round of asset purchases is beginning to pay off with a firming economy. "As the economy picks up, we'd expect that would be a force putting upward pressure on yields regardless of what the Fed is doing on the bond supply side," said James Hamilton, a professor at the University of California, San Diego. Bloomberg (1/30)      Japanese leader defends economic program    Abe/Reuters Prime Minister Shinzo Abe dismissed accusations abroad that Japan's economic policy is aimed primarily at driving down the yen, saying instead that beating back persistent deflation is the true objective. However, his government's forecast of 2.5% growth for the year is being challenged by private analysts at home who see a number of challenges ahead. Reuters (1/30) , Yomiuri Shimbun (Japan) (1/30)      China's consumer sentiment picks up in 4th quarter China's consumer confidence remained well above the global average in the fourth quarter, rising from the previous quarter as the nation's employment situation and inflation outlook brightened, according to data from Nielsen. "The rise of the confidence index in the fourth quarter is a positive signal regarding a rosy economic trend for 2013," said Yan Xuan, the president of Nielsen Greater China. China Daily (Beijing) (1/30)      Spain slides deeper into recession as eurozone brightens Spain plunged deeper into recession in the fourth quarter as the nation's economic contraction grew to 0.7%. However, across the troubled eurozone, consumer sentiment improved slightly this month, though it remains firmly on negative ground. Bloomberg Businessweek (1/30) , The Wall Street Journal (1/30)      Each charterholder has a tale to tell. What's yours? celebrate.cfainstitute.org   Market Activities  INTERNATIONAL MARKETS OVERVIEW The surprising report of a fourth-quarter contraction in the U.S. economy pushed shares lower Wednesday on both sides of the Atlantic. The Stoxx Europe 600 ended down 0.58% at 288.63, and the S&P 500 eased 0.39% to 1,501.96. Here is a continuously updated list of global stock indexes. The Wall Street Journal (1/30) , Bloomberg Businessweek (1/30) , CNNMoney (1/30)      Asian markets advance broadly Japanese stocks surged and markets across Asia posted more modest gains Wednesday on a generally more robust economic outlook. "Market sentiment is that the economic backdrop is better than this time last year," said Andrew Sullivan, director of sales trading at Kim Eng Securities. The Nikkei jumped 2.28% to 11,113.95, the Hang Seng rose 0.71% to 23,822.06, the Kospi added 0.43% to 1,964.43 and the S&P/ASX edged up 0.16% to 4,896.69. MarketWatch (1/30)        Economic Trends & Outlook  December retail sales edge up 0.1% in Japan amid slack economy    Reuters Japan's retail sales registered a weak month-to-month gain of 0.1% in December, switching from an equal contraction in November. Economists had predicted a stronger 0.4% gain. "There are few positive signs for private consumption. Employment and income conditions aren't improving much, as wages aren't rising," said Yoshimasa Maruyama, chief economist at Itochu. Bloomberg Businessweek (1/29)      Key consumer support for Indian economy may be giving way The reliable pillar of sustained consumer spending that has supported India's economy amid a decline in investment outlays and flagging export markets may be giving way at last. Early indications on several retail fronts are that consumers are spending less, perhaps due to persistent inflationary pressures and growing public skepticism about the future. LiveMint.com/The Wall Street Journal (India) (1/30)      RBI chief says current-account gap a factor in rate cuts Tuesday's quarter-point rate cut by the Reserve Bank of India may be followed by more, but the nation's current-account deficit, as well as inflation, will be an important factor in the decision-making, said bank Governor Duvvuri Subbarao. Separately, the central bank's action was followed swiftly by the country's largest lender, State Bank of India, which reduced its borrowing rate Wednesday by 0.05 percentage points. The Economic Times (India)/Reuters (1/30) , The Hindu (India) (1/30)      Prime minister surprises Australians with call for Sept. elections    Gillard/Reuters The state of Australia's economy is expected to emerge as a pivotal issue in a long campaign season launched Wednesday when Prime Minister Julia Gillard caught the country off guard and announced elections for Sept. 14. Gillard said she acted to sweep away uncertainties over when a vote would be called and allow her and her government to focus on matters at hand. The Sydney Morning Herald (Australia) (1/31)      South Korean bank lending rates, industrial output slacken South Korean banks' average 4.54% rate on new lending to households in December marked a record low as recession sapped demand, the Bank of Korea reported. Meanwhile, the rate of gain in South Korea's industrial production slowed considerably in December, falling to 0.8% year-on-year from 3.2% in November. MK.co.kr (South Korea) (1/30) , The Korea Herald (Seoul)/Yonhap News Agency (1/30)      Singapore lowers population, GDP growth outlook Aligning its desired growth rate with expectations of a lower rate of gain in population, Singapore now projects 3% to 5% annual GDP growth through 2020, according to a government whitepaper. The republic's workforce, meanwhile, is expected to grow at an annual pace of 1% to 2%. The Business Times (Singapore) (1/30)        Capital Markets & Financial Products  Japan's stimulus a tonic for bourses    Reuters The profit outlook for Japan's bourses is improving in line with the stocks traded on them, thanks to the effect of the new government's aggressive stimulus policies. Financial Times (tiered subscription model) (1/30)      China's strained banks face another surge in capital demand Seven trillion yuan worth of projects approved by China's National Development and Reform Commission in the past few months are expected to put banks' lending capacity to the test this year. The new investment push comes as loan-deposit ratios and capital adequacy ratios are already just marginally within regulatory standards. Caijing Magazine online (1/29)      China regulator raises lending warning flag    Shang/Reuters Defaults are a growing possibility in China's banking industry, the chairman of the China Banking Regulatory Commission reportedly warned at an annual working meeting in mid-January. Characterizing loans outstanding as "highly concentrated" and "broadly impacted," the chairman noted total loan balances amount to about 67 trillion yuan, with half to local governments, property and business clusters as well as industries with overcapacity. Caijing Magazine online (1/30)      Taiwan banks may launch yuan operations next week Next Wednesday is the earliest date at which Taiwan's local banks may begin accepting deposits in yuan, Taiwan's central bank announced. Individual banks, however, must qualify by submitting applications and the required documents to the Bank of China's branch in Taipei for approval. The Taipei Times (Taiwan) (1/31)        Industry & Regulatory Update  After 10% jump in 2012 revenue, Citi optimistic for Asia in 2013    Reuters Citi is looking ahead to a promising year in Asia after a 10% jump in regional revenue in 2012 with strong results from its rates and currencies businesses. In fact, all of Citi's Asia Pacific businesses performed "substantially better in 2012 than they did in 2011," said Nadir Mahmud, Citi's head of markets for Asia Pacific. The Business Times (Singapore) (1/30)      HSBC agreement to sell Ping An stake going down to the wire China's insurance regulator must approve HSBC's US$7.4 billion sale of its Ping An Insurance stake to Thai billionaire Dhanin Chearavanont by 11:59 tonight or the agreement will expire. But "the odds are high that the agreement will be extended, given that the buyer may need more time to prove its ability to finance the purchase," observed Olive Xia, an analyst at Core Pacific-Yamaichi International. Bloomberg (1/30)      Addition of unit helps boost Sumitomo Mitsui profit 34% With a boost from taking in SMBC Consumer Finance as a unit, Sumitomo Mitsui Financial Group saw a 34% surge in net profit for the nine months ended in December. Operating revenue, meanwhile, was up 8.5% to ¥3.184 trillion. The Wall Street Journal (1/30)      Learn more about CFA -> About CFA Institute  |  Advertise  |  Educational Resources  |  Social Media     Subscriber Tools     Print friendly format  | Web version  | Search past news  | Archive  | Privacy policy   Read more at SmartBrief.com Industry Home Readers' Choice Search Archive Download a SmartBrief Mobile app today       Recent CFA Institute Financial NewsBrief: Asia Pacific Edition Issues: Wednesday, January 30, 2013 Tuesday, January 29, 2013 Monday, January 28, 2013 Friday, January 25, 2013 Thursday, January 24, 2013     Lead Editor:   Jim Berard       Mailing Address: SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004     © 1999-2013 SmartBrief, Inc.®  Legal Information