COMMODITIES: Yuan vow lifts copper, oil; bullish for markets
SINGAPORE, June 21 (Reuters) - Commodity markets rose after China vowed to make its currency more flexible, but traders added the move would probably support raw material and grain prices more than energy.
"This will tempt speculators back into the market on the long side. Most of our markets are highly geared to Chinese demand and anything that encourages Chinese buying will be positive," a trader in Singapore said.
GLOBAL MARKETS: Riskier trades rally on China yuan move
HONG KONG, June 21 (Reuters) - Asian currencies and stocks rose and U.S. Treasuries fell on expectations that China will allow the yuan to strengthen and break the currency's 23-month-old peg, easing political tensions with the West and encouraging investors to take more risks.
All eyes will be on the Chinese central bank's mid-point fixing at about 0117 GMT, which may hint at the pace of yuan strength from now on.
Malaysia: Inflation rate climbs to one-year high on food costs
Malaysia’s inflation accelerated in May to the fastest pace in a year, as a strengthening economy boosted food and transport costs. Consumer prices climbed 1.6% from a year earlier after gaining 1.5% in April. (Bloomberg)
Malaysia's 2010 rubber imports to grow
KUALA LUMPUR, June 18 (Reuters) - Malaysia, the world's third largest rubber producer, may have to import as 600,000 tonnes of the commodity this year to meet higher global demand despite rising domestic output, an official said on Friday. Malaysian Rubber Board Director General Salmiah Ahmad said the Southeast Asian country has to continue importing as capacity utilisation was rather low at 60-70 percent of 1.3 million tonnes annual at a time of strong demand from China.
Thailand: Exports climb the most in almost 2 years
Thailand’s exports rose the most since July 2008 as the global recovery boosted orders, helping to offset the economic fallout from the political unrest in April and May. Shipments jumped 42.1% in May from a year earlier to USD16.6bn. Previously, exports surged 35.2% in April.(Bloomberg)
China: To allow more yuan flexibility, citing economy
The People’s Bank of China said it will allow more yuan exchange rate flexibility and reform of the exchange rate mechanism as the nation’s economic recovery has “cemented” after the global financial crisis. The central bank said it will continue with the existing trading band of the yuan. (Bloomberg)
China: Backs Obama with Treasury holdings rising to USD900bn
A year after criticizing US fiscal policy as “irresponsible”, China’s leaders are showing increasing confidence in President Barack Obama’s leadership of the American economy. China boosted holdings of Treasury notes and bonds by 2.6% to USD900bn in March and April, after reducing its stake by 6.5% from November through February. (Bloomberg)
Japan : Government pledged to cut the nation's tax on businesses and nurture the environment and health care industries as part of a plan to defeat deflation and end two decades of economic stagnation. The government pledged in its medium-term economic plan to bring the corporate tax rate down to a level "commensurate" with other leading nations. Firms in Tokyo pay a levy, including local taxes, of 40.7%. (Source: Bloomberg)
UK: Posts smaller-than-expected May budget deficit
Britain posted a smaller fiscal deficit in May than economists forecast as growth lifted tax receipts. The USD23.8bn shortfall announced was better than the USD26.8bn median forecast in a Bloomberg News survey. (Bloomberg)
US: Payrolls rose in 41 US states on government hiring
Payrolls increased in 41 US states in May, led by a surge in government hiring that probably reflected temporary workers to conduct the decennial census. Excluding government agencies, employment would have dropped in 3 of the 5 states showing the biggest gains in payrolls, including California, Florida and New York. Hiring in Texas, where a 43,600 increase in jobs led all states, was paced by gains in professional and business services, tourism and manufacturing. (Bloomberg)
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