20100928 1130 Global Economics News.

China: Industrial companies’ profits climb
Chinse industrial companies’ profits climbed 55% in the first eight months of 2010 from a year earlier, bolstering investment as the government pares back stimulus. Net income increased to RMB 2.6 trn (USD390bn), compared with an 11% decline in the same period in 2009. This number gave little indication that labor costs are dragging earnings, after local governments increased minimum wages and companies such as Foxconn Technology Group boosted pay. (Bloomberg)

Hong Kong: Exports unexpectedly increased
Hong Kong’s exports unexpectedly climbed the most in more than 18 years in August, buoyed by Chinese demand and the comparison with a decline a year earlier. Overseas sales increased 36% to HKD 290.1 bn after a 23.3% gain in July, the government said on its website today. None of seven economists in a Bloomberg News survey forecasted such a large jump. (Bloomberg)

Japan: Export growth slows
Japan’s exports grew at the slowest pace this year in August as a decrease in global demand and an advance in the yen threaten to undermine the nation’s recovery. Overseas shipments increased 15.8% from a year earlier, the slowest since December, underscoring concerns that the country’s recovery may falter after cooling exports and stagnant consumer demand more than halved the nation’s growth rate last quarter. The median estimate of 21 economists surveyed by Bloomberg News was for a 19% increase. (Bloomberg)

South Korea: Consumer confidence declines to 14-month low
South Korea’s consumer confidence fell to the lowest level in 14 months amid concern that the nation’s economic recovery will slow. The sentiment index declined for a second straight month to 109 in September from 110 in August, the Bank of Korea said. The index’s recent peak was a seven-year high of 117 in October. A number exceeding 100 indicates optimists outnumber pessimists. A sub-index measuring consumers’ views of the economic outlook dropped to 108 in September from 109 in August, while the expected inflation rate over the next year remained at 3.2%. (Bloomberg)

UK: Home prices decline most in 18 months
UK home values dropped by the most in 18 months in September as all of Britain’s regions posted price declines. The average cost of a home fell 0.4% from the previous month to GBP 157,600 (USD249,000), the third consecutive monthly drop and the biggest since March 2009. Housing demand fell the most since January 2009. Prices rose in September by 1% from a year earlier, the least in seven months. Prices fell in all regions for the first time since April 2009. (Bloomberg)

US: US sets duties on China and Mexico
The US imposed dumping duties on copper pipes and tubes from China and Mexico. The duties will be as much as 60.85% on USD233m of imports from China and as much as 31.43% on USD 130m of imports from Mexico for the products, used in plumbing and for carrying liquids or gases in heating systems. The decision, announced by the Commerce Department, is the third of four needed to make the tariffs final. Chinese and Mexican copper tube makers will have to deposit duties for products shipped to the US while the case is pending. The final ruling is scheduled for 8 Nov. (Bloomberg)

U.S: China bill in Congress may prompt retaliation, businesses say . U.S. legislation pressing China  to raise the value of its currency may boomerang by prompting retaliation against American businesses operating there, representatives of those companies said. The House of Representatives  is set to consider legislation this week that would let companies petition for higher duties on imports from China to compensate for the effect of a weak currency. (Source: Bloomberg)

Gold: Central banks and the IMF sold about 94.5 metric tons of gold in the year that ended on Sept. 27 , the lowest amount under an agreement that began in 1999, according to data from the World Gold Council. Eurozone banks disposed of 6.2 tons, led by Germany, Greece and Malta, while the International Monetary Fund sold 88.3 tons. The figure for the Eurozone banks was 96% below last year's 142 tons. (Source: Bloomberg)