Newscasts - Asia Markets Briefing: BOJ Governor keeps December rate hike on the table

Foxconn Technology

18/11/2024 09:00

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Source: 'Reuters - Business videos'

Description: Kazuo Ueda said the economy was progressing towards sustained
wages-driven inflation and warned against keeping borrowing costs too low. In
his first comments since the U.S. election, he also said the bank must whittle
down stimulus in a timely fashion as keeping real interest rates low for too
long could accelerate inflation more than expected.
Short Link: https://refini.tv/3Z0RLHI

Video Transcript:

The Bank of Japan governor keeps a December rate hike on the table. Welcome to
Asia Markets Briefing. I'm Ramzan Karmali. Kazuo Ueda said the economy was
progressing towards sustained wages driven inflation and warned against
keeping borrowing costs too low. In his first comments since the US election,
he also said the bank must whittle down stimulus in a timely fashion as
keeping real interest rates low for too long could accelerate inflation more
than expected. Though his comments left open the chance of a hike next month,
he didn't give clear guidance of timing, and that pushed the Dollar up against
the Yen. The market is pricing in a 54% chance of a December hike. On to the
markets now, and the Nikkei fell as tech shares tracked their US peers’
losses of last week. China's Mainland stocks also struggled but the handset
moved higher on a day that Goldman Sachs and Morgan Stanley downgraded their
China outlook. However, South Korea's KOSPI rose over 2%, with Samsung
Electronics the index largest constituent, helping drive gains. Rising more
than 5% following the announcement of a $7.2 billion share buyback on Friday
after trading hours. On to the oil markets now and prices edged up after
fighting between Russia and Ukraine intensified over the weekend. Concerns
about fuel demand in China still weigh on the markets though. Country Garden
has submitted the preliminary terms of an offshore debt restructuring proposal
to some creditors late last month. That's according to five sources familiar
with the matter. The struggling Chinese property developer is trying to avoid
liquidation. The proposal is thought to include a revised cash flow
projection. Apple supplier Foxconn has ordered the hiring agents that help
recruit iPhone assembly workers in India to remove age, gender and marital
criteria, as well as the manufacturers name in job ads. That according to
three people familiar with the matter and almost a dozen ads reviewed by
Reuters. The move follows a Reuters investigation published in June, which
found that Foxconn excluded married women from jobs at its main India iPhone
Assembly plant. Alibaba is planning to raise $5 billion in a dual currency
bond deal. That's according to two sources with direct knowledge of the
matter. The company confirmed plans for bond fundraising in a regulatory
filing on Monday, but said the size, interest rate and maturity would be
determined as the transaction progressed. It would be the largest corporate
bond deal in the Asia Pacific so far this year, according to LSEG data. Shares
in Alibaba though, fell in Hong Kong today. It's a fairly quiet week on the
economic front this week, but on Tuesday, we do get the latest trade data out
of Japan. Exports are expected to bounce back in October after falling by 1.7%
in September, with imports potentially moving in the opposite direction. And
that's it from your Asia Markets Briefing