20110323 0930 Global Economic Related News.

Japan: Yen near 2-week low as nuclear crisis eases, Asia stocks climb
The yen traded 0.3% from a two-week low against the euro as Asian stocks rose and progress by Japan’s government in restoring a crippled nuclear plant’s cooling systems sapped demand for the currency as a refuge. The euro was 0.2% from the strongest level in four months against the greenback on speculation European Central Bank officials will reiterate this week their willingness to raise interest rates next month. The yen erased losses against the dollar on speculation Japanese investors are repatriating overseas assets.(Bloomberg)

Japan: Weighs postwar-style reconstruction agency, injects cash
Japan may set up a reconstruction agency to oversee earthquake repairs, while data showed the central bank pumped record liquidity into lenders, as the nation grappled with its worst disaster since World War II. The Bank of Japan said yesterday lenders’ deposits with the central bank more than doubled since March 11, to JPY41.62 trn (USD513bn). (Bloomberg)

China: Yuan rises to 17-year high on interest-rate increase speculation
China’s yuan strengthened to a 17-year high on speculation policy makers will raise interest rates and allow more currency appreciation to curb inflation. The current cycle of rate increases is halfway over, the China Securities Journal said in its editorial today. The pace of yuan gains may accelerate as it will reduce the cost of imports, the paper said. The People’s Bank of China set the reference rate 0.06 % higher at 6.5592 per USD, the strongest level since July 2005. (Bloomberg)

Taiwan: Jobless rate fell to a 28-month low in February
Taiwan’s unemployment rate declined to a 28-month low as the island’s economic expansion encouraged recruitment, bolstering the case for higher borrowing costs. The seasonally adjusted rate fell to 4.59 % in February from 4.71 % in January, the statistics bureau said in Taipei today. That’s the lowest since October 2008. The median estimate of 10 economists surveyed by Bloomberg News was for a jobless rate of 4.7%. (Bloomberg)

UK: February inflation quickens more than forecast to 4.4%
UK inflation accelerated more than economists forecast in February to the fastest pace in more than two years, adding pressure on the Bank of England to increase its benchmark interest rate. Consumer prices rose 4.4% from a year earlier after a 4% increase in January, the Office for National Statistics said today in London. That’s the most since October 2008. The median forecast of 32 economists in a Bloomberg News survey was 4.2%. A separate report showed the budget deficit unexpectedly widened as government revenue fell. (Bloomberg)

US: Home prices fell 3.9% in January from prior year, FHFA says
US home prices fell 3.9% in January from a year earlier as the housing market struggled to recover from the worst crash in seven decades, according to the Federal Housing Finance Agency. The drop was led by an 8.6% slump in the region that includes Arizona and Nevada, followed by a 5.6 % retreat in the area that includes Florida, the agency said in a report today. Prices nationwide fell 0.3% from December. (Bloomberg)

Portugal: Says GDP will shrink as spending declines. Gross domestic product will fall 0.9% in 2011 following a 1.4% increase last year, according to Portugal's stability and growth program released. The forecast is less than the 1.3% contraction predicted by the Bank of Portugal in January and compares with an outlook of 0.2% growth included in the budget released last year. The new plan says the economy will expand 0.3% next year, 0.7% in 2013 and 1.3% in 2014. (Source: Bloomberg)

Japan: Cash at central bank to hit record on crisis steps. Japan's central banks pumped a record amount of funds into the financial system since March 11 to calm markets and soften the economic impact of the earthquake and tsunami. Lenders' deposits with the central bank will jump an estimated 146% to an all-time high of JPY 43.6tr (USD 539b), from JPY 17.7tr the day before the temblor struck, the Bank of Japan said in a release in Tokyo. (Source: Bloomberg)

Taiwan: Jobless rate declined to a 28-month low as the island's economic expansion encouraged recruitment, bolstering the case for higher borrowing costs. The seasonally adjusted rate fell to 4.59% in February from 4.71% in January, the statistics bureau said in Taipei. (Source: Bloomberg)