The Star Online: Business
The Star Online: Business |
- Trading in Ogawa World suspended
- Japan Q2 GDP revised up sharply, boosts case for tax hike
- Yen sags on Tokyo Olympics win, China data seen lifting Asia shares
| Trading in Ogawa World suspended Posted: KUALA LUMPUR: Trading in the shares of healthcare and wellness products distributor Ogawa World Bhd was suspended from 9am to 5pm on Monday. The company said it had requested for the suspension pending the release of material announcement. Ogawa's shares were last traded at 86 sen. In its financial year ended June 30, 2013, it posted net profit of RM14.37mil compared with net loss of RM1.35mil in the previous financial year. Its net asset per share was 72 sen. |
| Japan Q2 GDP revised up sharply, boosts case for tax hike Posted: TOKYO: Japan's economy expanded much faster than initially expected in the second quarter, adding to growing signs a solid recovery is taking hold and heightening the case for Prime Minister Shinzo Abe to proceed with a planned sales tax hike next year. A marked improvement in capital expenditure led to an upward revision in April-June gross domestic product (GDP) to an annualised 3.8 percent expansion from a preliminary 2.6 percent increase, data released by the Cabinet Office showed on Monday. The expansion, which roughly matched a median market forecast for a 3.7 percent increase, underscores the strength of Japan's recovery and boosts the chance the government will proceed with a two-staged increase in the sales tax. It was the third straight quarter of increase following a 4.1 percent growth in January-March. On a quarter-to-quarter basis, GDP growth was revised up to a 0.9 percent increase from a preliminary 0.6 percent. Japan emerged from recession in 2012 and data for much of this year has shown the benefits of Abe's reflationary policies and the BOJ's aggressive stimulus. Preliminary GDP data for April-June fell short of market forecasts due to weaker-than-expected capital spending, casting doubt on whether the tax hike will proceed as scheduled. But capital expenditure was revised up to a 1.3 percent rise from the preliminary 0.1 percent decline, suggesting that improving business sentiment is prompting companies to spend more on plant and equipment. The data gives the government more ammunition to counter critics of the tax hike, who have called for a delay or watering down of the increase on the view Japan's economy is still too weak to weather the pain. Abe has made ending economic stagnation among his key policy priorities, but must also be mindful of fixing Japan's tattered finances with public debt having ballooned to double the size of its $5 trillion economy due to past fiscal stimulus and the rising social welfare costs for a rapidly ageing population. The government has cited revised GDP data as among key factors in deciding whether to go ahead with lifting the sales tax to 8 percent from 5 percent next April, and to 10 percent in October 2015. Abe is expected to make a decision early October. - Reuters |
| Yen sags on Tokyo Olympics win, China data seen lifting Asia shares Posted: TOKYO: The yen dropped on Monday as traders positioned for a rally in Japanese shares after Tokyo won its bid to host the 2020 Summer Olympics, while Asian shares look set to gain after mildly upbeat Chinese trade data underscored signs of stability in the world's second-biggest economy. The dollar was steady after plunging against a basket of currencies on Friday following a disappointing jobs report. The payrolls data saw the dollar index drop to 82.256 from a 7-week high of 82.671 hit on Thursday as some traders pared back expectations that the Federal Reserve might start winding back its stimulus later this month. The dollar index was at 82.302 in early Asia trade, mainly as the U.S. currency rose 0.7 percent to 99.85 yen, in anticipation of gains in Japanese shares after Tokyo's Olympics win. The dollar/yen has had a high correlation to Japanese equities in recent months. "In the short-term, this (Olympics-bid win) will be positive mainly through a boost on Olympic-related shares," said Ryota Sakagami, chief equity strategist at SMBC Nikko Securities in a report. "In the longer run, its impact depends on how much the government can push for infrastructure investments and promotion of tourism business but it is likely to be positive on the Japanese economy and shares," he said. Improved Chinese trade figures released over the weekend might help Asian stocks push higher during the session. Data showed China's exports grew 7.2 percent in August, above market expectations of a 6.0 percent rise from a year earlier, adding to evidence that the world's second-largest economy may have avoided a sharp slowdown. However, import figures came in slightly weaker than expected and investors will be bracing for more data from China this week, including inflation on Monday and industrial production and retail sales on Tuesday. Investors are also grappling with the anxiety that withdrawal of the Fed's stimulus could destabilise asset prices worldwide. "Although the U.S. job data was disappointing on the whole, the jobless rate fell, inching closer to the 7.0 percent level, which the Fed said is a threshold to end the quantitative easing," said Tohru Yamamoto, chief fixed income strategist at Daiwa Securities. "The Fed will start tapering in September, perhaps little by little, like by $10 billion. It is hard to expect bond yields to fall before the next Fed meeting," he added. The U.S. Treasury note futures opened at 122-31.5/32, flat from late U.S. levels and off two-year low of 122-7/32 hit on Friday. Cash bond trading will start at 0000 GMT. The Australian dollar was up slightly on the Chinese trade data, fetching $0.9197, after hitting a three-week high of $0.9222 at one point. There was hardly much reaction to the widely expected outcome of Australia's national election, which saw the nation's conservative Liberal-National Party coalition sweep into power over the weekend. Elsewhere, U.S. crude oil futures stayed near two-year highs supported by concerns a possible military strike against Syria could stir broader conflict in the Middle East and cause disruption in oil supplies. - Reuters |
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