Economic Calendar

Tuesday, April 14, 2009

Business Inventories Continued to Drop in February

Daily Forex Fundamentals | Written by Wachovia Corporation | Apr 14 09 14:43 GMT |

Businesses continued to aggressively pare back inventories in February as the longest and deepest recession since World War II dragged on. Declines in inventories at retailers (the new information in this report) continued for a fifth straight month, dropping 1.2 percent. We expect inventories to be a major drag on first quarter GDP.

Inventories Fell Again

Inventories dropped another 1.3 percent in February after a similar sized decline in January. Over the last three months alone, businesses have cut an astonishing $239.1 billion at an annual rate.

Retailers pulled back further, as liquidations at bankrupt firms as well as cut backs at ongoing firms continued. We do not expect this trend to let up until at least mid-year.

Cuts Across the Board

Inventory declines now stretch across all the major sectors.

The inventory-to-sales ratio showed its first decline in 8 months as total sales inched slightly higher. Businesses were clearly caught with far too much inventory late last year and have had to cut aggressively to start 2009. We expect the drag from inventories may top three percentage points when GDP figures for the first quarter are released at the end of the month.

Wachovia Corporation
http://www.wachovia.com

Disclaimer: The information and opinions herein are for general information use only. Wachovia Corporation and its affiliates, including Wachovia Bank, N.A., do not guarantee their accuracy or completeness, nor does Wachovia Corporation or any of its affiliates, including Wachovia Bank, N.A., assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sales of any security or any foreign exchange transaction, or as personalized investment advice. Securities and foreign exchange transactions are not FDIC-insured, are not bank-guaranteed, and may lose value.


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Retailers Failed to Lure Consumers in March, as Job Losses Mounted!!!

Daily Forex Fundamentals | Written by ecPulse.com | Apr 14 09 14:37 GMT |

Incoming data from the U.S. economy continues to signal that we are still far from recovery, despite that the Federal Reserve Chairman Bernanke is optimistic over the outlook, as he believes that the recent signs from the housing and spending sectors are starting to show some bottoming and that would mark the first step towards recovery.

On the other hand the Chairman of the Federal Reserve Bank of Dallas Richard Fisher is being more pessimistic, as he expects the world's largest economy will contract beyond the contraction seen during the last three months of 2008, the U.S. economy contracted by 6.3 percent.

Fisher believes that rising unemployment will continue to suppress economic growth in the United States, as Fisher signaled that unemployment might rise above 10 percent this year, the unemployment rate surged in March to the highest level since 1983 at 8.5 percent.

Rising unemployment, tightened credit conditions, falling stocks, and declining home values continue to weigh down on economic growth in the world's largest economy amid the worst financial crisis since the Great Depression.

Meanwhile data released today continued to signal the persistent weakness in economic activity, as retail sales dropped in March by 1.1 percent following the prior revised rise of 0.3% and well below median estimates of a drop by 0.15, meanwhile retail sales that exclude autos also declined in March by 0.9% following the prior revised estimate of 1.0% and well below median estimates for a flat estimate.

Consumers are still hammered by worsening economic conditions and rising unemployment, as apparently retailers failed to lure consumers through discounts and accordingly the worst is still not over, as we might witness further deterioration over the course of this year.

Meanwhile the producer price index signaled worrying figures, as the PPI dropped in March by 1.2% following the prior rise of 0.15 reported back in February and well below median estimates of a flat reading, while compared with a year earlier PPI fell 3.5% following the prior drop of 1.3% and well below median estimates of a 2.2% drop.

Core PPI was flat in March also below median estimates of a 0.1 percent rise and below the prior reported rise of 0.2%, while compared with a year earlier core PPI rose 3.8% down from the prior and expected rise of 4.0 percent.

Downside risks to inflation continue to threat the world's largest economy with deflation, though we are still not there yet, but the fact that deflation might materialize could prove to be challenging, and might indeed lead the Fed to expand its quantitative easing beyond the current $300 billion.

The Fed decided to start quantitative easing after monetary policy measures failed to revive lending or economic growth, and accordingly the Fed needed to undertake more drastic and unorthodox measures in a bid to reduce long term interest rates and implicitly fight deflation.

Tomorrow the consumer price index should provide further hints on inflation, but seemingly the ongoing recession has managed to suppress prices so far, and should that prove to be an ongoing trend, deflation might become a reality rather than a concern.

Meanwhile stock markets declined in today's early trading session on the downbeat data, as the DJIA declined by 75.11 points or 0.93 percent and was last trading at 7982.70, while the S&P 500 index declined by 7.31 points or 0.85% and was last trading at 851.42, and the NASDAQ Composite index declined by 11.33 points or 0.69% and was last trading at 1641.98, data as of 10:23 New York time.

Stock markets are expected to fluctuate heavily throughout this week, as a number of companies including JPMorgan Chase and Citigroup will announce their first quarter results and accordingly investors should be careful, as the worst might not be over yet!!!

Ecpulse

disclaimer: The content of ecPulse.com and any page in the website contain information for investors/traders and is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable but is not guaranteed as to accuracy or completeness. ecPulse is not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trades currencies, stocks, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, stocks gold, silver &energies presented should be considered speculative with a high degree of volatility and risk






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U.S.: Consumer Spending Much Weaker Than Expected

Daily Forex Fundamentals | Written by TD Bank Financial Group | Apr 14 09 14:19 GMT |
  • U.S. retail sales declined for the first time since December, falling 1.1% M/M.
  • Excluding autos and gas, sales were down 0.8% M/M.
  • The details of the report were simply awful, as spending in almost every category declined

U.S. retail sales posted a dramatic 1.1% M/M drop in March, ending two consecutive months of gains. This decline in consumer spending was in stark contrast to the market consensus for a modest 0.3% M/M increase, and comes on the heels of the upwardly revised 0.3% M/M gain (previously reported as -0.1% M/M) the month before. Sales excluding autos were also quite weak, falling by 0.9% M/M. This was also worse than the market expectations for a flat print. Core retail sales, which strip out sale of autos and gasoline were also soft, declining by 0.8% M/M. On a year ago basis, all three measure are down significantly.

Despite the massive drop in retail sales, the 3-month annualised trend remains favourable, rising by 4.0% (from -3.8%), while the 3-month annualised trend for sales excluding autos is up 6.9%, from -2.7%.

The details of the report were simply abysmal. Spending in almost every category declined, with the exception of spending on food (which rose 0.5% M/M) and health and personal care (rising 0.4% M/M). On the other hand, there were big declines in spending on motor vehicles (down 2.3% M/M), furniture and home furnishing (down 1.7% M/M), electronics (down 5.9% M/M), gasoline (down 1.6% M/M), clothing (down 1.8% M/M) and general merchandise (down 0.2% M/M). Spending at department stores was also weak, falling by 0.3% M/M.

Prior to this report, the flow of U.S. consumer reports had all consistently surprised (pleasantly) to the upside, and we were certainly mindful that sales were due for a correction, though tentative indicators for car sales, same store sales and gasoline sales in March had suggested otherwise. Nevertheless, despite this very weak spending report for March, it appears likely that consumer spending may add favourably to U.S. economic activity in the first quarter, due in large part to the strong performances in the first two months of this year. However, this is unlikely to form a platform for a sustained rebound in overall consumer spending in the U.S as the backdrop for the U.S. household remains quite weak.

TD Bank Financial Group

The information contained in this report has been prepared for the information of our customers by TD Bank Financial Group. The information has been drawn from sources believed to be reliable, but the accuracy or completeness of the information is not guaranteed, nor in providing it does TD Bank Financial Group assume any responsibility or liability.






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Financials Lead Risk Appetite Higher High Yielders Benefit

Daily Forex Fundamentals | Written by AC-Markets | Apr 14 09 02:38 GMT |

Market Brief

The dollar was slammed versus most of the majors based on increased demand for higher yielding assets. The EurUsd rallied strong rising 175pips to the higher range of 1.33, while the UsdJpy slid 16pips settling near 100. The GbpUsd surged 170pips to the mid range of 1.48, based on the general trend of weakness in the dollar. Equity markets closed negative in the US, but ended positive in Europe. The Dow was nearly unchanged on a percentage basis off a mere .32%, but we may be poised for a strong open tomorrow based on strong corporate earnings announced after hours. Bond yields remain constricted with the shorter maturity paper at historically low levels with the 2yr UST at 0.867% and the 10yr at 2.858%. Commodities were mixed with the energy sector seeing a slight pullback, and the precious metals sector gaining strength. Crude oil is trading around $50bbl, which is 4% lower than its previous close. Gold added 1.34% bringing the price to $893oz and silver gained 2.94% to 12.75oz.

The trend of rising appetite persists with a shockingly strong earnings announcement from Goldman Sachs. The firm reported a 9.4Bln profit, surpassing estimates of $1.64 at $3.39 EPS (Earnings Per Share). This is a critical piece of information for Traders looking to effectively manage fluctuations in risk appetite. Earnings season will be a strong factor in driving financial markets, as a central concern for investors has been the viability of banks. We see strong signs that the Aussie and Kiwi should benefit from the return back to higher yielding assets, and possibly a re-emergence in the carry trade. The carry trade may be well ahead of us, but the clear interest rate differential between currencies like the AudJpy and NzdJpy. The Euro and Sterling benefited from the shift in risk sentiment, but the near-term economic outlook for these regions are unclear making them less attractive.

ACM FOREX

Disclaimer: This report has been prepared by AC Markets (thereof ACM) and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Salesperson or Traders of ACM at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.



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Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Apr 14 09 03:05 GMT |

EUR/USD closed higher on Monday and below the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. Closes below last week's low crossing would confirm that a short-term top has been posted. If it renews last week's rally, March's high crossing is the next upside target.

USD/JPY closed higher on Monday against the dollar and below the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. Closes below last week's low crossing would confirm that a short-term top has been posted. If it renews last week's rally, March's high crossing is the next upside target.

GBP/USD posted an inside day and closed higher on Monday and below the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. Closes below last week's low crossing would confirm that a short-term top has been posted. If it renews last week's rally, March's high crossing is the next upside target.

USD/CHF closed higher on Monday against the dollar and below the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. Closes below last week's low crossing would confirm that a short-term top has been posted. If it renews last week's rally, March's high crossing is the next upside target.

HY Markets
http://www.hymarkets.com





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Australian Business Confidence Gains for Second Month

By Jacob Greber

April 14 (Bloomberg) -- Australian business confidence rose in March for a second month, boosted by government cash handouts to taxpayers and the lowest borrowing costs in five decades.

The sentiment index gained 9 points to minus 13, according to a National Australia Bank Ltd. survey of more than 400 companies released in Sydney today.

While today’s report shows pessimists outnumbered optimists for a 14th month, the increase in confidence suggests government handouts and interest-rate cuts may stoke consumer spending. Reserve Bank of Australia Governor Glenn Stevens reduced the benchmark lending rate to a 49-year low of 3 percent last week.

“While an element of fear appears to be abating, the index is still quite low,” said Alan Oster, chief economist at National Australia Bank in Melbourne. The “survey still points to falling demand in the first quarter.”

The Australian dollar traded at 72.87 U.S. cents at 11:40 a.m. in Sydney from 72.86 cents just before the report was released. The two-year government bond yield was unchanged at 2.93 percent.

Australia’s jobless rate jumped to 5.7 percent in March, the biggest increase since the economy was last in a recession in 1991. Qantas Airways Ltd. said today it will cut 1,750 workers and managers amid a slump in international travel.

Oster expects the jobless rate will rise to 7.75 percent next year, higher than his previous forecast of 7.5 percent. The central bank says the economy will contract this year.

Interest Rates

A gauge of employment fell 2 points to minus 29, and a measure on the outlook for exports dropped 4 points to minus 30, National Australia Bank said.

To stoke domestic demand, central bank Governor Stevens has cut the benchmark interest rate by a record 4.25 percentage points since September. The government also is spending A$42 billion ($31 billion) on cash handouts to households and on infrastructure.

National Australia’s business conditions gauge, a measure of hiring, sales and profits, rose 3 points to minus 17, close to the lowest since June 1992.

A measure of forward orders gained 9 points to minus 18, and capacity utilization fell 0.5 points to 78.9 percent, the lowest level since July 2001, today’s report showed.

“Recent business outcomes continue to struggle,” Oster said. “Every sector is still reporting significant deterioration in activity levels.”

To contact the reporter for this story: Jacob Greber in Sydney at jgreber@bloomberg.net





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Thailand’s Korn Says Economy May Shrink More Than 3%

By Shanthy Nambiar and Haslinda Amin

April 14 (Bloomberg) -- Thailand’s Finance Minister Korn Chatikavanij said the government will lower its forecast that the economy will contract 3 percent this year as anti-government protests disrupt tourism and investment.

The size of the cut to the forecast will depend on how long it takes to return the country to “normalcy,” Korn said today in a Bloomberg Television interview. Protests have made reviving the economy a harder task, he said.

Southeast Asia’s second-largest economy may shrink as much as 3 percent this year as exports slide and unemployment climbs, Korn said last week. Overseas sales, which make up 70 percent of Thailand’s gross domestic product, have fallen for four straight months as demand for Asia’s electronics and other goods plunges.

Clashes with troops in Bangkok yesterday left two dead and at least 97 people injured and led Australia and Britain to warn their citizens to avoid Thailand. The clashes came one day after the government declared its third emergency decree since September.

The prospect of prolonged unrest threatens to deter foreign investment just as the Thai economy confronts its first annual contraction in 11 years.

“The costs of this political turmoil are rising and economy will be hit badly,” said Tetsuji Sano, a Singapore- based economist at Nomura Holdings Inc. “Foreigners are losing confidence, companies will be more reluctant to invest and tourists will choose go somewhere else.”

Spending

Moody’s Investors Service and Standard & Poor’s yesterday said they may lower the nation’s foreign-currency debt ratings as the continued political instability hurts tourism revenue and spurs capital outflows.

The government plans to proceed with its spending plans this year, Korn said today. There is no threat that the government will lose control of the security situation in Bangkok, he said.

Thailand has said it will spend about 1.57 trillion baht ($44.5 billion) over three years, mainly on infrastructure projects, to help create jobs and spur economic growth. That is in addition to an earlier 116.7 billion-baht stimulus package of public works, training programs, cash handouts and tax breaks.

To contact the reporters on this story: Shanthy Nambiar in Bangkok at snambiar1@bloomberg.net;





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China Economic Growth May Cool to Slowest in Almost 10 Years

By Kevin Hamlin

April 14 (Bloomberg) -- China’s economic growth probably cooled to the slowest in almost 10 years in the first quarter, marking the trough of a slump brought on by a collapse in exports amid a global recession.

Gross domestic product grew 6.3 percent from a year earlier, according to the median estimate of 12 economists surveyed by Bloomberg News, down from 6.8 percent the previous three months. The report is due April 16.

China is battling the worst global recession since World War II with a 4 trillion yuan ($585 billion) stimulus plan that spurred the first increase in manufacturing in six months and a surge in bank lending. The benchmark Shanghai Composite Index yesterday rose to an eight-month high after Premier Wen Jiabao said the economy showed better-than-expected growth, citing rising investment in fixed assets and consumer demand.

“Recovery is a high certainty now,” said Tao Dong, chief Asia economist at Credit Suisse AG in Hong Kong. “Infrastructure investment remains at full speed, bank lending reaccelerated in March and property transaction volumes have surged across the country.”

The World Bank, the Asian Development Bank and the Organization for Economic Cooperation and Development all see signs the stimulus is working and predict that GDP will begin to increase at a faster pace again in the second half.

Signs of Recovery

Signs of recovery include an increase in automobile sales to a record 1.08 million vehicles in March, a government-backed index showing manufacturing expanded for the first time in six months, and an acceleration in first-quarter property investment to 4.1 percent in the first quarter from 1 percent in the first two months of the year.

“Whether the economy can accelerate from this point is unclear, but it certainly seems to have stabilized,” said Stephen Green, head of China research at Standard Chartered Plc in Shanghai.

The economy still has to weather the effects of a collapse in exports, which fell for a fifth month in March. Steel prices have dropped this year and industrial profits slumped 37 percent in January and February combined, the first decline since records began in February 2007. The OECD forecasts world trade will contract 13 percent this year.

More than 20 million jobs have already been lost, and the Asian development Bank estimates that even with economic growth of 7 percent, the stimulus spending would only create about 9 million jobs.

Export Decline

“The trend decline in exports is unbroken,” said James McCormack, head of Asia sovereign ratings at Fitch Ratings in Hong Kong. “Chinese gross domestic product growth will remain below potential until the global economy recovers.”

China’s stimulus package is focused on infrastructure projects such as a new high-speed rail link between Shanghai and Nanjing, and the Xiamen-Zhangzhou cross-sea bridge.

That’s led to concern that the government wasn’t doing enough to encourage its people to spend the money they save to pay for medical expenses or retirement. Consumer spending represents about 35 percent of China’s GDP compared with more than two-thirds in the U.S.

The government has “room to do more” to improve health, education and social security to boost incomes, the World Bank said last month.

In recent weeks the government has moved to increase confidence and to expand the social safety net. The State Council this month announced an 850 billion yuan health-care plan, including building at least one hospital in every county and expanding medical insurance coverage to 90 percent of the 1.3-billion population by 2011.

Rural Consumption

China this year is spending 20 billion yuan to subsidize purchases of televisions and refrigerators in rural areas and plans to increase spending on welfare by 29 percent.

Premier Wen Jiabao said April 11 that China will “closely” monitor changes in the domestic and world economy and “hammer out” new response plans when needed.

The central bank on April 13 pledged to provide “ample liquidity” to ensure money supply and loan growth meet economic development needs.

Easing inflation also gives policymakers room to introduce more support measures.

Consumer prices probably fell 1.3 percent in March after dropping 1.6 percent in February, another Bloomberg survey showed. Producer prices declined 5.8 percent, a steeper contraction than the 4.5 percent the month earlier, the survey showed.

To contact the reporter on this story: Kevin Hamlin in Beijing at khamlin@bloomberg.net.





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Crude Oil Extends Decline as U.S. Stockpiles May Have Gained

By Christian Schmollinger

April 14 (Bloomberg) -- Oil fell below $50 a barrel, extending yesterday’s 4.2 percent decline, on forecasts U.S. crude inventories gained last week because of plummeting fuel demand during the global recession.

An Energy Department report tomorrow may show oil supplies rose 2 million barrels last week, according to the median of responses in a Bloomberg News survey. Stockpiles are at the highest since July 1993 as refiners shut units for maintenance. Prices plunged yesterday after the International Energy Agency cut its 2009 demand prediction.

“The story for demand remains very weak,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. “There is no evidence of a turnaround in the economic situation in the U.S.”

Crude oil for May delivery declined for a second day, dropping as much as 47 cents, or 0.9 percent, to $49.58 a barrel in electronic trading on the New York Mercantile Exchange. It was at $49.68 a barrel at 10:08 a.m. Singapore time.

Prices are up 11 percent so far this year after tumbling 54 percent in 2008. Oil fell $2.19 yesterday to settle at $50.05 a barrel, in the biggest drop on the Nymex since March 30.

Oil demand will shrink 2.8 percent this year as worldwide gross domestic product declines by 1.4 percent, according to the International Energy Agency, the adviser to 28 consuming countries. Consumption will decline 2.4 million barrels a day this year, about the same amount that Iraq produces, to 83.4 million barrels a day.

Gasoline Stockpiles

U.S. crude-oil supplies increased 1.65 million barrels to 361.1 million in the week ended April 3, the Energy Department said April 8.

Gasoline stockpiles probably dropped 750,000 barrels from 217.4 million a week earlier, according to the survey. Distillate fuels, a category that includes heating oil and diesel, probably fell 1 million barrels from 140.8 million.

Brent crude oil for May settlement was at $52.03 a barrel, down 11 cents, on London’s ICE Futures Europe exchange at 9:49 a.m. Singapore time. It fell $1.92, or 3.6 percent, to end yesterday’s session at $52.14 a barrel.

The May contract expires tomorrow. The more-active June contract was at $52.92 a barrel, down 11 cents, at 10:09 a.m. Singapore time.

Brent is trading at a more than $2-a-barrel premium to the West Texas Intermediate contract in New York, swinging from a discount of 43 cents on March 31.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net





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Singapore Says Economy May Contract as Much as 9%

By Shamim Adam

April 14 (Bloomberg) -- Singapore said its economy may shrink as much as 9 percent this year, the most in its 44-year history, as a deepening global recession hurt exports and manufacturing.

The economy may shrink 6 percent to 9 percent, the trade ministry said in a statement today, reducing its forecast for the third time since early January. The government previously predicted a contraction of as much as 5 percent.

Singapore stocks fell after exports tumbled for an 11th month amid a slump that’s forced Chartered Semiconductor Manufacturing Ltd. to fire workers and the government to reduce taxes and subsidize jobs. The central bank said it would adjust the trading range for the Singapore dollar, Southeast Asia’s worst performing currency this year.

“The re-centering effectively translates to roughly a 1.7 percent devaluation of the Singapore dollar on a trade-weighted basis,” said Wai Ho Leong, a regional economist at Barclays Capital in Singapore. The central bank “is simply re-pricing the currency to newer realities of inflation.”

The Monetary Authority of Singapore, which uses the exchange rate to manage price stability, said the local dollar had been trading at the lower end of its target range since October. The band will now be “re-centered” to reflect its recent levels, it said, effectively lowering the target.

Devaluation Effect

The currency rose 0.8 percent today after the central bank said there’s no reason for an “undue weakening.” Singapore stopped favoring gains in the local dollar in October and the central bank said today it will continue to seek neither appreciation nor depreciation in the currency.

The worst global economic slump since World War II has pushed Asia’s trade-dependent nations into the region’s deepest slowdown in more than a decade. Singapore’s efforts to prevent job losses by handing out cash to companies haven’t stopped manufacturers such as Chartered and music-player maker Creative Technology Ltd. from firing workers as orders fall.

Companies probably fired more than 10,000 workers in the first three months of 2009, Prime Minister Lee Hsien Loong said last week, according to the Straits Times.

Gross domestic product declined an annualized 19.7 percent last quarter from the previous three months, after shrinking 16.4 percent between October and December, the trade ministry said today. The contraction was more than double the 9.6 percent drop predicted by economists in a Bloomberg survey.

Exports Plunge

“The global economy is expected to remain weak in the coming quarters,” the trade ministry said today. “While there are tentative signs of some stabilization in the housing, financial and manufacturing sectors in the U.S., they do not point to a clear turnaround in economic activity.”

Exports fell 17 percent in March, the trade promotion agency said today. Overseas shipments may drop as much as 13 percent in 2009, the government said, revising a previous estimate for a decline of 9 percent to 11 percent.

“Visibility remains fairly poor,” said Chong Chow Pin, senior director for corporate development at United Test Assembly Center Ltd., a Singapore-based assembler and packager of semiconductors. “It’s too early to say if the semiconductor industry is out of the woods but the first quarter appears to be the bottom. Of course, no one can be certain.”

Singapore’s $161 billion economy contracted 11.5 percent last quarter from a year earlier, compared with a 4.2 percent decline in the three months ended December.

Manufacturing, which accounts for a quarter of the economy, fell 29 percent in the three months ended March from a year earlier, the trade ministry said.

Services shrank 5.9 percent in the first quarter, while construction gained 25.6 percent.

To contact the reporter on this story: Shamim Adam in Bangkok at sadam2@bloomberg.net





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Asian Financial Shares Gain on Goldman Profit; Qantas Slumps

By Darren Boey

April 14 (Bloomberg) -- Asian financial stocks advanced after Goldman Sachs Group Inc. reported better-than-estimated earnings. Qantas Airways Ltd. and Sumitomo Realty & Development Co. slumped on disappointing profit reports.

National Australia Bank Ltd., the nation’s biggest lender by assets, climbed 3.6 percent as Goldman Sachs’ earnings fueled optimism that industry profits will recover. BHP Billiton Ltd. gained 1.8 percent in Sydney after copper prices rose. Qantas, Australia’s largest airline, fell 7.7 percent, while Sumitomo Realty, Japan’s No. 3 developer, sank 6.9 percent in Tokyo.

The MSCI Asia Pacific Index added 0.3 percent to 88.68 at 11:05 a.m. in Tokyo, snapping a three-day, 4.3 percent advance. The gauge has climbed 26 percent from a five-year low reached on March 9 amid speculation government stimulus efforts worldwide will succeed in easing the global financial crisis.





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Taiwan Energy Debate to Pit Ma Against Nuclear Power Opponents

By Yu-huay Sun

April 14 (Bloomberg) -- Taiwan will debate ending an eight- year ban on new nuclear reactors to help curb emissions from electricity generation, potentially pitting President Ma Ying- jeou against critics who say atomic power is too dangerous.

“How we’re going to deal with nuclear energy is up for discussion,” Yeh Huey-ching, head of Taiwan’s energy bureau, said in an April 7 interview in Taipei. A two-day state conference on energy starting tomorrow will bring together 205 government officials, scholars, executives and environmentalists and resolutions will be adopted as government policy.

Taiwan’s biggest power company favors building more reactors to help meet Ma’s pledge of cutting carbon emissions, reflecting the global resurgence of nuclear energy in countries from China to the U.S. Opponents say the risk of accidents from earthquakes and radioactive leaks is unacceptable.

“Nuclear power is an inevitable option because we want to cut carbon emissions,” Tu Yueh-yuan, chief engineer of state- run Taiwan Power Co., said on April 2. The company has room to add as many as 10 reactors at its existing nuclear power plants, she said. To authorize that, Ma would have to reverse a decision by his predecessor, Chen Shui-bian.

Chen’s government said in February 2001 the island will eventually end the use of atomic energy after nuclear plants in operation and one under construction are retired.

Lifting of the ban would benefit companies such as General Electric Co. and Toshiba Corp.’s Westinghouse Electric Co. that have supplied reactors and turbines to Taiwan. Reducing coal- fired generation may cut imports of the fuel from Indonesia and Australia, which accounted for 80 percent for shipments in 2008.

Nuclear ‘Option’

Ma, who took office last May, has pledged to cut carbon emissions to 2000 levels by 2025.

“Nuclear power should be considered an option among many energy forms,” Wang Yu-chi, President Ma’s spokesman, said by telephone on April 8.

China, India, Japan and South Korea are among Asian nations planning more reactors to reduce reliance on coal.

China will increase nuclear generation capacity to 70,000 megawatts by 2020, 75 percent higher than a previous target. India seeks to add 60,000 megawatts of nuclear capacity by 2030, or 10 percent of total generation. Japan plans to build 13 more reactors by the end of 2017, while South Korea intends to build 12 plants by 2022, according to industry and government data.

“So far there’s no reliable way to handle nuclear waste,” said Wang To-far, a former lawmaker who plans to attend the policy conference. “Using nuclear power may also slow the development of renewable energy.”

Taipower Reactors

Taipower, as the island’s biggest electricity producer is known, operates six reactors and is building two more. Six of these are in the Taipei county, home to 17 percent of the island’s 23 million residents.

Atomic reactors provided 26 percent of Taiwan’s electricity in February, coal-fired generators 45 percent, while gas-fired stations supplied 18 percent, according to Taipower’s Web site. The balance comes mainly from oil, hydropower and wind turbines.

Taiwan sits along faults between the Philippine Sea and Eurasian Continental tectonic plates where quakes occur as the plates push together, spurring concern over safety of nuclear power plants. In September 1999, a temblor centered 150 kilometers south-southwest of Taipei killed 2,500 people.

‘Dangerous Proposition’

“Taiwan’s demographics make nuclear a very dangerous proposition,” said Robin Winkler, a Taipei-based lawyer and former member of Taiwan’s environmental impact assessment commission. “If the issues of safety and waste could be solved, I could consider nuclear as an option, but to date, whether Taiwan or anywhere else, those issues haven’t been resolved.”

In Japan, Tokyo Electric Power Co. indefinitely shut the word’s biggest atomic station after an earthquake caused radiation leaks and a fire in July 2007. In August 2004, five workers were killed by a steam leak at a plant operated by Kansai Electric Power Co.

Taipower stores spent fuel rods at its plants, including the No. 3 nuclear power station, six kilometers (3.7 miles) from the beachside town of Hengchun on the island’s south. Less radioactive waste is kept on Orchid Island off the southeastern coast, where residents’ protests have forced the utility to search for a new dump site.

Taiwan should develop renewable sources, such as solar and wind power, instead of nuclear reactors, to help reduce carbon emissions, said conference delegate Wang.

Discussions at the conference will cover renewable power, prices and an energy tax, the energy bureau’s Yeh said. The government wants renewable energy to account for 15 percent of Taiwan’s electricity generation capacity by 2025, from 8 percent now, he said.

To contact the reporter on the story: Yu-huay Sun in Taipei ysun7@bloomberg.net





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Most China Stocks Decline, Led by Utilities, Shipping Companies

By John Liu

April 14 (Bloomberg) -- Most Chinese stocks fell, led by power producers and shipping lines, as electricity demand retreated and China Merchants Energy Shipping Co. said earnings dropped.

Huaneng Power International Inc., the listed unit of China’s largest power group, sank 0.6 percent after output fell last month. China Merchants Energy Shipping lost 2.1 percent. Zhongjin Gold Corp., the country’s second-largest by market value, added 2.9 after bullion jumped the most in three weeks.

“It looks like earnings aren’t rebounding,” said Wei Wei, an analyst at West China Securities Co. in Shanghai. “Everyone is betting on better earnings in the second quarter, but that’s still uncertain.”

The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, fell 7.41, or 0.3 percent, to 2,506.29 as of 10:01 a.m. local time. About five stocks fell for every three that rose. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, fell 0.1 percent to 2,653.12.

Sichuan Changhong Electric Co., China’s second-biggest television maker, dropped 0.2 percent after saying last year’s earnings probably slumped.

The Shanghai Composite’s 38 percent gain this year makes it the second-best performer among the 88 primary stock gauges tracked by Bloomberg globally. Stocks have rallied on optimism the government’s 4 trillion yuan ($585 billion) stimulus package and record new lending will spur a recovery in the world’s third-largest economy amid the global recession. Interest rates were cut five times from September to December.

China’s economy probably expanded 6.3 percent from a year earlier in the first quarter, the slowest pace in almost 10 years, according to the median estimate of 12 economists surveyed by Bloomberg News. The statistics bureau is due to release the figure on April. 16.

Huaneng

Huaneng Power sank 0.6 percent to 7.88 yuan. Datang International Power Generation Co., a unit of China’s second- biggest electricity producer, lost 0.3 percent to 7.52 yuan.

China’s March power output fell about 2 percent from a year earlier as the world’s third-biggest economy slowed, an official from the China Electricity Council said, citing preliminary data compiled by the industry group. He declined to be named before the data’s release.

China Merchants Energy Shipping, the country’s largest operator of international oil tankers, slid 2.1 percent to 5.62 yuan. The company said profit tumbled 57 percent in the first quarter because of a decline in freight rates.

Changhong Electric fell 0.2 percent to 4.58 yuan. The company said profit may slump more than 50 percent in 2008 because operations were hurt by the 7.9-magnitude earthquake that hit Sichuan province in May.

Zhongjin Gold jumped 2.9 percent to 59.52 yuan. Shandong Gold Mining Co., China’s third-largest bullion producer, increased 1.5 percent to 77 yuan. Gold futures for June delivery climbed 1.4 percent to $895.80 an ounce in New York yesterday, the biggest gain for a most-active contract since March 19.

To contact the reporter on this story: John Liu in Shanghai at jliu42@bloomberg.net





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Hong Kong Stocks Climb; Banks Advance on Goldman Sachs Earnings

By Hanny Wan

April 14 (Bloomberg) -- Hong Kong stocks rose, lifting the benchmark index to the highest level in more than three months, as Goldman Sachs Group Inc. reported better-than-estimated earnings and metal prices climbed.

BOC Hong Kong (Holdings) Ltd., a unit of Bank of China Ltd., added 4.4 percent on optimism industry profits will recover. HSBC Holdings Plc, Europe’s biggest bank, advanced 3.5 percent after saying it may sell three of its landmark office buildings in London, New York, and Paris. Aluminum Corp. of China Ltd., the nation’s biggest producer of the metal, jumped 6.7 percent.

The Hang Seng Index added 247.87, or 1.7 percent, to 15,149.28 as of 10:03 a.m. local time, set for its highest close since Jan. 6. The Hang Seng China Enterprises Index, which tracks so-called H shares of Chinese companies, rose 2.4 percent to 9,043.35.

To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net





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Japan Shares Fall on Sumitomo Realty Profit; Bridgestone Drops

By Masaki Kondo

April 14 (Bloomberg) -- Japanese stocks fell, led by property companies and tiremakers, after Sumitomo Realty & Development Co. missed its profit target and rubber prices reached a five-month high.

Sumitomo Realty, Japan’s No. 3 developer, slumped 3.5 percent as writedowns on stockholdings caused profit to fall short of its forecast. Smaller rival Tokyo Tatemono Co. dropped 5.9 percent. Bridgestone Corp., the world’s largest tiremaker, sank 4.8 percent. Mizuho Financial Group Inc., Japan’s No. 2 listed bank, led banks higher after Goldman Sachs Group Inc. reported better-than-expected earnings.

The Nikkei 225 Stock Average fell 88.60, or 1 percent, to 8,835.83 as of 9:40 a.m. in Tokyo, reversing an early gain. The broader Topix index slipped 6.16, or 0.7 percent, to 842.81, with more than three stocks declining for every two that rose.

Sumitomo Realty dived 3.5 percent to 1,293 yen. The company posted 44 billion yen ($439 million) in net income for the year to March 31, 15 percent lower than its projection because of writedowns on its stockholdings, it said yesterday in a preliminary earnings report.

Tokyo Tatemono lost 5.9 percent to 385 yen. Mitsui Fudosan Co., the nation’s biggest property developer, declined 2.2 percent to 1,290 yen, and Mitsubishi Estate Co., the No. 2, fell 1.8 percent to 1,316 yen.

Bridgestone lost 4.8 percent to 1,476 yen. Smaller rival Toyo Tire & Rubber Co. fell 5.1 percent to 185 yen. Rubber for September delivery, the most-active contract, rose 2.2 percent to settle at 178.2 yen a kilogram ($1,770 a metric ton) on the Tokyo Commodity Exchange yesterday. Earlier, futures rose as much as 3.1 percent to the highest since Nov. 12.

Mizuho added 1.5 percent to 199 yen, while Sumitomo Trust & Banking Co. jumped 3.1 percent to 432 yen. Nomura climbed 1.9 percent to 637 yen.

Goldman Sachs, the sixth-largest U.S. bank by assets, earned $3.39 a share in the first quarter, the company said yesterday after markets shut, beating the $1.64 estimated by analysts, as trading revenue outweighed asset writedowns. Goldman Sachs plans to sell shares to repay the $10 billion it got from the U.S. Treasury.

To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.





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OPEC Cuts Thwarted as Brazil, Russia Grab U.S. Market

By Mark Shenk

April 14 (Bloomberg) -- As OPEC nations make their biggest oil production cuts on record, Brazil, Russia and the U.S. are pumping more, sending crude back below $50 a barrel as demand slows.

U.S. imports from the Organization of Petroleum Exporting Countries fell 818,000 barrels a day, or 14 percent, to 5.02 million in January from a year earlier, according to the latest monthly report from the Energy Department. At the same time, imports from Brazil more than doubled to 397,000 and Russia’s increased almost 10-fold to 157,000, a trend that continued in February and March, according to data from each country.

While the median forecast in a Bloomberg News survey of 32 analysts shows crude in New York averaging $61 a barrel in the fourth quarter, up from the second-quarter’s estimate of $50, traders are increasing bets on a decline. The fastest-growing options contract on the New York Mercantile Exchange is for prices to fall below $40 a barrel by May 14.

“OPEC has done a good job keeping oil in the $50 area but they will have to cut substantially more, maybe more than they are capable of, if they want higher prices,” said John Kilduff, senior vice president of energy at MF Global Inc. in New York. “You are going to hear greater calls for non-OPEC producers to cooperate and make cuts.”

Imports fell by 148,000 barrels a day in January just as America’s production increased by 153,000, according to data compiled by the Energy Department in Washington. More oil is flowing just as the slowing economy causes consumption to contract for the second consecutive year.

U.S. Consumption

The U.S. used an average of 18.9 million barrels a day in the four weeks ended April 3, down 4.4 percent from a year earlier, according to the Energy Department, the lowest level since October. Gross domestic product will contract by 3.8 percent in North America in 2009, the International Energy Agency said in a report April 10, dropping an earlier forecast for a recovery in the economy and oil demand in the second half of the year.

Inventories climbed 1.65 million barrels in the week ended April 3, the highest since July 1993, U.S. government data show. Supplies are 12 percent above the five-year average for the period and are the equivalent of 25.4 days of consumption, up from 22.1 days a year ago.

Open interest, or the number of outstanding contracts, on the June put option for oil to fall to $40 a barrel rose by 20 percent to 24,503 contracts in the five trading days from April 3 to April 9. A so-called put gives the owner the option to sell commodities at a predetermined price in the future. Bets that crude will drop to $45 rose by 13 percent.

Crude Below $50

Nymex futures for May delivery fell as much as 47 cents, or 0.9 percent, to $49.58 a barrel before trading at $49.62 at 10:12 a.m. in Singapore.

OPEC agreed at three meetings last year to cut output by 4.2 million barrels a day, a 14 percent reduction to 24.845 million, as prices fell from a record $147.27 on July 11. The group reduced pumping by 1.2 percent in March, according to a Bloomberg News survey of oil companies, producers and analysts. The 11 members with quotas produced 25.06 million barrels.

As shipments declined, deliveries from exporters that aren’t in OPEC rose by 670,000 barrels a day in January. Russian overall exports climbed 6.3 percent in February and 2.2 percent in March, according to the Energy Ministry. Brazilian total exports more than doubled in both February and March, according to Brazil’s Trade Ministry.

Russian Cooperation

Algerian Oil Minister Chakib Khelil, who held the group’s rotating presidency in 2008, said March 17 that he was disappointed Russia hadn’t cut production to support prices. Suppliers need prices in a $60-to-$75 range to support production of higher-cost resources, Saudi Arabian Oil Minister Ali al-Naimi said on March 16 in Geneva.

Russia also lowered export duties this month to $15 a barrel from $15.70 in March to boost exports, the IEA said in the April 10 report. Brazilian production will rise 7.2 percent in 2009 to 2.54 million barrels a day, the IEA said.

“They want to capture as much of the U.S. market as they can, as fast as they can,” Robert Ebel, chairman of the energy and national security program at the Center for Strategic and International Studies in Washington, said of the non-OPEC producers. “As long as they can make some money at it, they will ship their oil here.”

In January, Russia and Brazil earned $23.2 million a day in exports to the U.S., based on the $41.92 a barrel average on the Nymex that month.

U.S. Market

“Russia has been trying get a foothold in our market for a long time,” said Bill O’Grady, chief markets strategist at Confluence Investment Management in St. Louis. “With both gas and oil Russia hopes to gain geopolitical leverage.”

Petroleo Brasileiro SA, the state-controlled energy company, said in January that it plans to invest $174.4 billion through 2013 to boost production oil and gas production to the equivalent of 4.63 million barrels a day by 2015 from 2.40 million in 2008.

“Brazil is interesting both in the near term and long term,” said Rachel Ziemba, an analyst at RGE Monitor, an economic research company in New York. “In the near term there’s been a lot of production brought online. In the longer term Petrobras has one of the most aggressive investment programs in the industry.”

Canceling Projects

Lower prices will hamper development of new sources. Total SA, Europe’s third-largest oil company, said April 6 it may postpone an investment decision in Canadian oil sands because of costs. Chevron Corp., the world’s fourth-largest energy company, delayed the start of production at three Nigerian projects and more than doubled cost estimates on some of its biggest new finds. Drilling and equipment costs remain near their 2008 peaks even as prices plunged.

The U.S. will import an average 4.57 million barrels a day from OPEC in 2009, down 7.5 percent from last year, according to the Energy Department’s Annual Energy Outlook. Total imports are forecast to drop 7.3 percent this year to an average 9.02 million barrels a day.

“This is a reallocation of supply,” said Francisco Blanch, head of global commodities research at Merrill Lynch & Co. in London. “The U.S. is a far off point for most of OPEC to deliver to. It’s natural that with OPEC cutting back dramatically you are going to see non-OPEC pick up some market share.”

To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net





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South Korean Won Nears 3-Month High as Global Funds Buy Stocks

By Kim Kyoungwha

April 14 (Bloomberg) -- South Korea’s won strengthened, approaching a three-month high, as overseas investors added to their holdings of local stocks for the fourth day in a row.

The won has surged 12 percent in the past month, the best performance among Asia’s 10 most-used currencies, as record-low borrowing costs and government stimulus plans help combat an economic slump. It reached an 11-year low on March 6 on concern sliding exports and tighter global credit markets would starve the nation of foreign exchange needed to pay overseas debt.

“Foreign stock buying is giving a sustained boost to the won,” said Park Sang Bae, a currency dealer with Industrial Bank of Korea in Seoul. Still, “the upside in the currency is limited this week as more dividends to foreigners are due. The market may enter a consolidation soon.”

The won rose 0.3 percent to 1,325.75 per dollar as of 9:45 a.m. in Seoul, according to a data compiled by Bloomberg. It touched 1,298.05 on April 10, the highest since Jan. 8. The Kospi index slid 0.5 percent, after yesterday posting its highest close since October.

To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net;





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Singapore Re-Centers Currency Trading Band at Review

By Patricia Lui

April 14 (Bloomberg) -- Singapore’s central bank has “re- centered” the exchange-rate band in which the local dollar is managed at a twice-yearly policy review today.

The Monetary Authority of Singapore relies on the currency rather than interest rates as its policy tool. The move to depreciate the currency was predicted by 15 of 17 economists surveyed by Bloomberg News last month. Policy makers maintained a neutral stance, signaling they will seek neither gains nor losses in the city-state’s dollar, and left the width of the trading band unchanged.

“The current level of the Singapore dollar nominal effective exchange rate is appropriate for maintaining domestic price stability over the medium term, taking into account the prospects for growth in the Singapore economy,” the bank said in an e-mailed statement. “MAS will therefore re-centre the exchange rate policy band to the prevailing level of the Singapore dollar nominal effective exchange rate.”

The local currency climbed 1 percent to S$1.5015 versus the U.S. dollar as of 8:27 a.m. in Singapore, paring this year’s loss to 3.8 percent.

Singapore’s economy remains “sound” and its financial system is “resilient,” the central bank added. “There is therefore no reason for any undue weakening of the Singapore dollar.”

To contact the reporter on this story: Patricia Lui at plui4@bloomberg.net





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Australian Dollar Falls From 6-Month High; N.Z. Dollar Weakens

By Garfield Reynolds

April 14 (Bloomberg) -- The Australian dollar declined for the first time in four days on speculation yesterday’s advance to a six-month high was overdone. New Zealand’s dollar dropped.

Both currencies also weakened against the yen as Japanese shares and U.S. stock futures dropped, damping investor demand for higher-yielding assets. Australia’s dollar extended declines after a survey of businesses showed pessimists outnumbered optimists for a 14th straight month.

“There’s been some consolidation after yesterday’s move to a six-month high as equity futures have also weakened, capping the rally for now,” said Sue Trinh, senior currency strategist at RBC Capital Markets Ltd. in Sydney.

Australia’s dollar slid 0.4 percent to 72.89 U.S. cents as of 12:09 p.m. in Sydney from yesterday, when it touched 73.25 cents, the strongest level since Oct. 7. The currency fell to 72.79 yen from 73.25 yen.

New Zealand’s dollar declined to 58.97 U.S. cents from 59.25 cents in New York. It dropped to 58.90 yen from 59.30 yen.

The Australian currency may fall as low as 71.80 U.S. cents, Trinh said. New Zealand’s dollar may find sellers at 59.80 U.S. cents and buyers around 58.30 cents, she said.

Australia’s dollar strengthened 1.7 percent yesterday, the most since April 2, after Goldman Sachs Group Inc. reported profit that exceeded analysts’ estimates and Chinese Premier Wen Jiabao indicated his government is considering additional stimulus measures.

‘Enthusiasm’

“There’s enthusiasm about the Australian dollar after gains in international equities and commodities, bolstered by China’s cyclical recovery,” said Richard Grace, chief currency strategist at Commonwealth Bank of Australia in Sydney. “Australia’s economic health relative to other major nations is also supportive for the currency.”

The South Pacific nations’ currencies may retreat in the short term before resuming their rallies this year, Grace said. Australia’s dollar may decline to less than 72 U.S. cents this week and New Zealand’s may weaken to below 58 U.S. cents, he said. Commonwealth Bank estimates Australia’s dollar will advance to 77 U.S. cents by the end of the year and New Zealand’s will reach 65 cents, Grace said.

Australian business confidence rose in March for a second month, boosted by government cash handouts to taxpayers and the lowest borrowing costs in five decades. The sentiment index gained 9 points to minus 13, according to a National Australia Bank Ltd. survey released in Sydney today.

Loan Approvals

Australian home-loan approvals rose for a fifth month in February and consumer confidence jumped this month by the most since August, reports last week showed, adding to signs a record round of interest-rate cuts and government handouts are boosting the economy.

The New Zealand and Australian dollars are the best and third-best performers, respectively, against the yen in the past month as a revival in risk appetite spurred investors to return to so-called carry trades. New Zealand’s dollar rose 15 percent against the yen, the most among the 16 most-traded currencies, while Australia’s strengthened 13 percent.

Carry trades involve borrowing in nations with low benchmark interest rates, such as Japan’s 0.1 percent, to buy assets in countries with higher rates, such as Australia and New Zealand, where the benchmarks are both set at 3 percent. The risk is that exchange-rate movements can erase profits.

Australian bonds fell for a second day. The yield on the benchmark 10-year note advanced one basis point, or 0.01 percentage point, to 4.61 percent, according to data compiled by Bloomberg. The price of the 5.25 percent security maturing March 2019 fell 0.041, or A$0.41 per A$1,000 face amount, to 105.082.

New Zealand’s two-year swap rate, a fixed payment made to receive floating rates, was little changed at 3.835 percent.

To contact the reporter on this story: Garfield Reynolds in Sydney at greynolds1@bloomberg.net.





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Yen, Dollar Rise as Stock Declines Increase Demand for Safety

By Ron Harui

April 14 (Bloomberg) -- The yen and the dollar advanced against the euro on speculation declines in Asian shares and U.S. stock futures spurred investors to seek the relative safety of the two currencies.

The euro also ended two days of gains versus the dollar on concern a German report tomorrow will show wholesale prices in Europe’s largest economy dropped for an eighth month, backing the case for the region’s central bank to cut interest rates. Singapore’s dollar climbed versus all 16 most-active currencies after the city-state’s central bank “re-centered” the exchange-rate band in which the local dollar is managed.

“The selling in the stock market is causing buying of the yen,” said Toshihiko Sakai, head of trading for foreign exchange and financial products in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan’s biggest bank. “The dollar also may be bought as a ‘safe-haven’ currency.”

The yen rose to 133.15 per euro as of 10:35 a.m. in Tokyo from 133.81 in New York yesterday. The greenback climbed to $1.3322 per euro from $1.3368 yesterday when it touched $1.3392, the weakest since April 7. Japan’s currency was little changed at 100.01 versus the dollar from 100.10.

The Nikkei 225 Stock Average fell 1.7 percent and futures on the Standard & Poor’s 500 Index declined 0.6 percent.

To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net.





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