The Star Online: Business
The Star Online: Business |
- Asian markets up in early trade
- NZ current account deficit, debt rise
- HSBC sells Japan private bank to Credit Suisse
| Asian markets up in early trade Posted: 20 Dec 2011 05:51 PM PST PETALING JAYA: Asian markets were mainly higher in Wednesday's early trade as initial concerns about potential regional tensions following the death of North Korea's Kim Jong-Il subsided. However, the ongoing Euro zone debt crisis is still saping investor sentiment. At 9.12am, the benchmark FBM KLCI was up 13.16 points to 1,478.33, underpinned by selected blue-chip stocks, such as British American Tobacco (M) Bhd which was up 84 sen to RM48.84; PPB Group Bhd which rose 38 sen to RM17.08 and Genting Bhd which gained 22 sen to RM10.58. As for regional indices, Tokyo's Nikkei 225 rose 1.47% to 8,458.94 while Hong Kong's Hang Seng Index was up 2.12% to 18,462.64. Shanghai's A index was flat at 2,215.93 while Taiwan's Taiex Index rose 3.84% to 6,918.48. Seoul's Kospi Index gained 2.62% to 1,840.05, with Singapore's Straits Times Index increasing 1.66% to 2,657.98. Nymex crude oil rose 28 cents to US$97.58 per barrel. Spot gold was up US$9.25 to US$1,625.15 per ounce. The ringgit was quoted at 3.165 to the US dollar. Full content generated by Get Full RSS. |
| NZ current account deficit, debt rise Posted: 20 Dec 2011 04:57 PM PST WELLINGTON, Dec 21 (Reuters) New Zealand's annual current account deficit widened more than expected in the third quarter on Wednesday, as exports softened and foreign investors earned more from their New Zealand investments. The balance of payments data also showed a rise in foreign debt as banks borrowed more offshore to fund loans to domestic customers because of low domestic savings. "It's a doubledsided sword it's bad for the current account but it's actually reflecting positive signs in the domestic economy," said UBS senior economist Robin Clements. "It's not a good look to have a current account deteriorating in the global environment." The kiwi dollar was briefly softer at around $0.7673 from $0.7684 before edging back to predata levels, underpinned by improved risk sentiment driven by stronger U.S. and European data. Local interest rate futures were unmoved. The deficit for the year to Sept. 30 widened to NZ$8.7 billion ($6.7 billion) from a deficit of NZ$7.4 billion in the previous quarter, equating to 4.3 percent of gross domestic product (GDP) compared with the forecast of 3.9 percent of GDP in a Reuters poll. The current account deficit has started rising again, after falling to a 21year low of 1.9 percent of GDP in March 2010 because of large oneoff payments by major banks to settle a longrunning tax dispute with authorities. DEFICIT SET TO WIDEN The deficit is expected to worsen further as imports will rise along with a recovering economy, but the rise in overseas liabilities debt was also seen as a worry. "With debt an ugly word at present, more progress will be needed to boost ... saving ... so that an unwelcome adjustment is not forced up on us," said ANZNational economist Mark Smith. Smith said the onus will be on fiscal tools to boost savings and investments. "It will be painful, but necessary," he added. New Zealand has relied on foreign borrowing to help fund its spending for decades due to low levels of household savings. The bigger deficit raised the country's net foreign liabilities, measured by international investment positions, to 72.9 percent of GDP from 69 percent in the previous quarter. The debt level peaked at 84.6 percent of GDP in March 2009. Australia's level is about 60 percent. Standard & Poor's and Fitch cut New Zealand's sovereign credits to double A from double Aplus in September because of its high foreign debt. The data does not affect the monetary stance of the Reserve Bank of New Zealand, which has held its cash rate at a record low 2.5 percent since a 50 basis point cut in March to support sentiment after an earthquake in Christchurch. The annual balance showed a narrower trade surplus, while investment deficit the gap between earnings for foreign investors in New Zealand, and the country's foreign investments increased to NZ$10.3 billion from NZ$9.6 billion. The services deficit widened slightly for the year, as the cost of the Rugby World Cup offset the spending of more than 80,000 overseas visitors in September and October. The capital account posted a surplus of NZ$9.8 billion, after peaking at NZ$13.7 billion in the June quarter on the inflows of insurance payments resulting from the Christchurch earthquake this year. The central bank has forecast the annual current account gap to rise to 5.0 percent of GDP by March 2014 as the economy returns to normal growth, increasing imports and investment earnings for foreigners. ($1=NZ$1.30) Full content generated by Get Full RSS. |
| HSBC sells Japan private bank to Credit Suisse Posted: 20 Dec 2011 04:54 PM PST SINGAPORE, Dec 21 (Reuters) Credit Suisse is buying HSBC's private banking business in Japan, beefing up its presence in the world's thirdlargest economy where it began onshore private banking just two years ago. HSBC, Europe's biggest bank, said the value of the gross assets of the business being sold was $2.7 billion as of Oct. 31, 2011, but it did not disclose the sale price. "This acquisition will strengthen Credit Suisse's private banking capabilities and reinforces its longstanding commitment to offering leading wealth management services in the Japanese market," the Swiss bank said in a separate statement Credit Suisse said it plans to expand client coverage through the integration of new offices in Osaka and Nagoya and aims to boost profitability. Currently the Swiss bank has an office in Tokyo. The acquisition, which is subject to regulatory approval, is expected to close in mid2012 "This acquisition is a demonstration of our commitment to build a leading private banking business in Japan, acquire assets, and drive profitability," said Junya Tani, head of private banking for Credit Suisse in Japan. "Since we began our onshore private banking business in 2009, the progress we have made has exceeded expectations and we are looking forward to building on this success with this acquisition." Credit Suisse said its private banking business in Asia Pacific has been among the fastestgrowing of its international wealth management businesses, with annual doubledigit growth in net new assets. HSBC said the sale is part of its strategy outlined at the Investor Day in May 2011. The bank's chief executive, Stuart Gulliver, wants to cut annual costs by $3.5 billion and sharpen the bank's focus on Asia by quitting countries or businesses where it lacks scale. The British bank last month reported a 36 percent fall in thirdquarter profits as the euro zone debt crisis hit investment bank income, while strains in the U.S. economy saw bad debts there jump by almost $1 billion, the first rise in two years. Full content generated by Get Full RSS. |
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