Strong rebound on Asian stock
Posted by admin | Under economics, finance, people, publications, technology Monday Jun 21, 2010In Asia, stock exchanges like the message of the Central Bank of China, who said she was "determined to continue the reform of the mechanism of the exchange rate of the renminbi (yuan's other name) to enhance flexibility . An advertisement for a symbolic opening week of the G20 summit in Toronto, so that international pressure was becoming increasingly urgent.Now, the road to separation of the link between the Chinese currency and the dollar began.
The People's Bank of China warned however that the adjustments would not do at once.
According to Wang Tao, an economist at UBS, "it is possible to arrive quickly enough to an appreciation (the yuan) 3 or 4% in the coming weeks." Mark Williams of Capital Economics expects more modest gains: of about 2% vis-à-vis the dollar by the end of the year.
A rising yuan would also give China greater purchasing power, which would be positive for world trade and especially for commodity exporters such as Australia, Brazil, Canada and New Zealand. China is the second largest oil consumer behind the United States.The country is also the largest consumer of iron ore, copper and aluminum.
The currency movement
By Monday morning, the Australian dollar has gained one cent to $ 0.88. He then returned to 0.8765 dollar when China has set its reference rate for the yuan.
The three-month copper on the London Metal Exchange gained 2.33% to 6,585 dollars per tonne.
A barrel of oil gained 1.35% to 78.22 dollars per barrel of light crude Texan.
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In trading, the index rose on average by 3%, according to the S & P Asia 50 Index, which comprises the largest market capitalizations in the region no faxing payday loans.
In China, the Shanghai Stock Exchange recorded an increase of over 2% on Monday morning. In Hong Kong, the Hang Seng wins 2.6% to 20,806 points."The airlines, real estate or in metals are the most direct beneficiary of yuan appreciation," said Shen Jun, an analyst at Bank of China International.
In Japan, the Nikkei 225 wins 2.07% to 10,201 points by 6:45, while the Topix rose 1.87% to 901 points.
In Australia, the rise of the S & P/1SX 200 reached 1.22%, 4607 points.
China and Australia: EUR 7 billion contract
Australia and China on Monday signed several contracts worth 10 billion Australian dollars (7.1 billion €) after discussions between Prime Minister Kevin Rudd and Chinese Vice President Xi Jinping visits in the country.
The ten agreements, mainly in the field of mineral resources and energy, reflecting strong and growing cooperation between Canberra and its largest trading partner, largest consumer of mineral resources in Australia, Mr Rudd said in a statement.
Xi Jinping arrived here Saturday to Australia for a five-day visit during which the project should be tackled controversial Canberra tax on super profits of mining groups.
Beijing fears that the tax drives up the prices of raw materials which China is a big buyer.
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