Chinese stocks finished in bear-market territory on Monday, even as the country's central bank rolled out a easing package over the weekend.» Read More
Asia’s economies may still be booming, but a worrying amount of private sector credit is laying the groundwork of the next financial crisis, according to a new research by Capital Economics.
The recent slew of manufacturing data suggest Asian economies are on the path to recovery after a year of slowing growth, but economists warn it might be too early for celebration.
Official and private sector surveys on China’s manufacturing sector suggest the economy is finally perking up, boosting stocks in Shanghai almost 2 percent on Thursday. But exports, the main engine of growth, are still struggling and that means the Chinese recovery is not on solid ground yet, economists say.
China’s largest state-owned banks are moving big chunks of their European business to Luxembourg as they seek to escape tougher regulation in the City of London. The FT reports.
Bank of China, the country’s fourth-largest lender by market value, defied expectations and beat consensus estimates for its third-quarter earnings on Thursday amid concerns that the sector is hurting from a slowing economy. Now, some analysts say pessimism about the sector may be overblown and that the lender’s numbers may be a sign of things to come for its peers.
A slew of Chinese data, including quarterly growth numbers, adds weight to what observers have been saying for weeks — that the slowdown in the economy may have bottomed. That may just be what the country’s stock market needs to get out of the doldrums.
Recent economic data such as stronger-than-expected exports and benign inflation in September are the latest signs that China’s slowdown may be nearing an end, reducing pressure on the government to implement more stimulus measures to shore up the world’s second-biggest economy.
China’s economy, forecast to grow this year at 7.5 percent—the slowest annual pace since 1999—may need more aggressive stimulus to prevent a steeper slide, but the state has so far resisted calls to step in in a big way.
After passing on interest rate cuts in the last two months despite mounting evidence of a deteriorating economy, the Bank of Korea (BoK) will likely move to ease monetary policy when it meets on Thursday, to bolster an economy that’s expected to grow at the slowest pace since 2009.
Chinas corporate reporting season for the third quarter kicks off on Monday amid profit warnings and earnings downgrades, but analysts think the worst may be over for Chinese firms, with the last quarter of the year expected to bring back some cheer.
The annual Golden Week holiday in China is typically marked by chaos in motorways as millions of Chinese travelers hit the holiday trail, and this year is no different. The upside? The clogged roads are hints the economy may avert a hard landing, at least for now.
In the space of 30 days, five major central banks round the world took turns to deliver aggressive stimulus measures in a bid to counter a deteriorating economic outlook and boost domestic growth.
Investors hoping for more stimulus measures from China to boost its slowing economy may have to wait a little longer. Analysts say Beijing is unlikely to take any action until after the Communist party holds its congress on November 8, an event that is particularly significant this year because it will mark a once-in-a-decade leadership change.
With China approaching a leadership transition and the economy continuing to show signs of weakness, the government will likely embark on a fresh stimulus program, Dan Greenhaus, chief global strategist at BTIG, told CNBC’s “Squawk on the Street” on Thursday.
The U.S. Government’s high debt levels are a greater cause of concern than those of euro zone countries, says Li Daokui, a former Chinese central bank adviser, urging the world’ largest economy to push ahead with reforms to put its fiscal house in order.
China is at risk of nurturing “zombie companies” as the economy continues to slow and banks are compelled to continue funding failing businesses, warns independent economist and former Morgan Stanley’s Chief Asia-Pacific Economist Andy Xie.
China may be under pressure to cut interest rates and boost a slowing economy, but further monetary tightening would be unwise and China should keep credit tight in order to keep a lid on house prices, says billionaire investor Jim Rogers.
Landlords of shops in malls and High Street across the region were generally unable to get higher rents in the second quarter compared to a year before. Analysts also tell CNBC that there may be more room for rents to fall in the second half of the year as retail sales soften in key markets as such Singapore and Hong Kong.
Much weaker-than-expected trade data from China on Friday suggests the world’s second largest economy is slowing faster than anticipated and could prompt Beijing to take action in days rather than weeks to boost flagging growth, some analysts say.
Chinese policymakers are likely to cut interest rate and reserve ratio requirements this quarter, JPMorgan’s Chief Asian and Emerging Markets Equity Strategist, Adrian Mowat, told CNBC’s “Squawk on the Street” on Thursday.