In Monday's Asia papers

16 October 2006 02:39  [Source: ICIS news]

Asahi Shimbun, Japan (online edition)

Front page

 

Japan tightening the squeeze on N. Korea

As the government debated a new special measures law Friday to let Japan help other countries inspect North Korean vessels, some effects of Tokyo's new sanctions against Pyongyang were already visible.

“We'd like to extensively discuss whether legislation is needed,” Defense Agency chief Fumio Kyuma told reporters Friday. “We are considering reviewing the matter on whether Japan can provide refueling and other support measures with or without a special measures law.”

 

Tokyo hoping to raise its cool factor by riding on 'imperial breeze'

First there was the “cool biz” campaign. Now, try “cool city,” an ambitious project that government officials believe will put Tokyo on the map as an environmental leader.

And for part of the new clean, green campaign, Environmental Ministry officials will even have a little imperial help. They're eyeing the capital's sweeping Imperial Palace as a roundabout way to assist the nation in meeting its carbon dioxide emission targets.

 

Business & Industry

 

JAL looks to smaller jets to restore profit

Japan Airlines Corp. expects a new fleet of fuel-efficient small and midsize aircraft will lower operational costs and improve profitability, President Haruka Nishimatsu said.

He said the airline must return to profitability in the current fiscal year partly to ensure it can take out bank loans to purchase new aircraft.

 

Kyushu bank woos white knights

FUKUOKA--Kyushu-Shinwa Holdings Inc. said Friday it will seek about Yen30bn ($250m) in financial support from the Bank of Fukuoka and a Tokyo-based investment fund.

Kyushu-Shinwa, based in Sasebo, Nagasaki Prefecture, will allocate new common shares worth about Yen7bn to the Bank of Fukuoka, the largest regional bank in Kyushu.

 

China Daily, China (online edition)

Front page

 

UN resolution is 'firm, appropriate'

China hopes the United Nations Security Council's latest move can help peacefully solve the nuclear issue on the Korean Peninsula, Foreign Ministry spokesman Liu Jianchao said yesterday.

His remarks came shortly after the Council unanimously adopted a resolution against the Democratic People's Republic of Korea (DPRK) over its claimed nuclear test last Monday.

 

Canton Fair imports new name

GUANGZHOU: After almost 50 years as the Chinese Export Commodities Fair, the “Canton Fair” is about to get a new name.

Attending the opening ceremony of the 100th session in the southern metropolis of Guangzhou, Premier Wen Jiabao announced that next year the event will be called the “Chinese Import and Export Commodities Fair.”

 

Business & Industry

 

Growth in China's bank loans slows in September: central bank

The galloping expansion of China's bank loans showed signs of being reined in during September, with CNY120bn ($15bn) less credit issued year on year, indicating the government's macro control efforts are taking effect, the central bank released 13 October.
The outstanding loans granted by China's banks reached CNY22.1trn by the end of last month, a 15.23% increase year on year, but 0.9 percentage points lower than a month earlier, according to the latest report from the central bank.

 

Trade union recruits 6.5 million migrant workers

The All-China Federation of Trade Unions said it has recruited 6.5 million migrant workers in the first six months of this year, reaching the entire year's target.
An official with the federation said on 12 October that the aim of recruiting migrant workers is to better protect their political and legal rights.

 

Taiwan News, Taiwan (online edition)

Front page

 

KMT vote to determine view on toppling cabinet

Kuomintang legislative caucus whip Tsai Chin-long announced yesterday that the KMT legislators will hold a straw ballot during a meeting at noon today to decide whether or not to support a People First Party motion to topple the cabinet.

“The result of the secret ballot will determine if 'all' KMT lawmakers support a proposal for a no-confidence vote on the Cabinet,” said Tsai.

 

Chen wishes for unity amid 'varied voices' across island

President Chen Shui-bian called for the public yesterday to demonstrate esprit de corps amid the “varied voices” from different parts of the country.

During a trip to Taiwan's southernmost county of Pingtung, Chen expressed his wish that if divided opinions on the national identity issue cannot be smoothed out temporarily, the country should at least try to avoid dividing further.

 

Business & Industry

 

Taiwan wealth gap widening to 36-1 in 2005, says report

The gap between Taiwan's rich and poor has continued to widen in recent years, reaching an enormous 36 times in 2005, according to statistics compiled by a government agency and released yesterday.

The richest 720,000 households in Taiwan had an average annual earning of NT$2.1m ($64,024) in 2005, while the poorest 720,000 households made an average annual earning of NT$58,000 ($1,768) the same year, leaving a gap of 36-1 between the rich and poor, according to statistics compiled by the Directorate General of Budget, Accounting and Statistics (DGBAS).

 

Intermodal 2006 to focus on Europe transport

Europe's transport infrastructure is under severe strain. Increasing container volumes are pouring into a handful of ports capable of handling bigger ships. Terminals, roads and the railways are groaning as the transport network reaches saturation point.

The 31st Intermodal Conference, slated for 5-7 December in Hamburg, will provide solutions on how the crisis could be averted and focus on the need for effective transport capacity management across the network.

 

Korea Herald, South Korea (online edition)

Front page

 

UN imposes sanctions on NK

UNITED NATIONS - The UN Security Council voted unanimously to impose sanctions on North Korea including ship searches for banned weapons, calling Pyongyang's claimed nuclear test “a clear threat to international peace and security.” North Korea walked out, rejecting the resolution and accusing the council of “gangster-like” action.

The US-sponsored resolution approved Saturday demands that the reclusive communist nation abandon its nuclear weapons program, and orders all countries to prevent North Korea from importing or exporting any material for weapons of mass destruction or ballistic missiles. It also orders nations to freeze assets of people or businesses connected to these programs, and ban the individuals from traveling.

 

Seoul draws line on UN resolution

The South Korean government welcomed the latest UN resolution listing sanctions against Pyongyang but did not budge on the fact that it would little change Seoul's current measures regarding North Korea.

Seoul also said it will continue close diplomatic contacts with relevant countries to coordinate measures.

 

Business & Industry

 

UN sanctions unlikely to affect economy here

The UN Security Council's decision to impose sanctions on North Korea is unlikely to have a significant impact on the South Korean economy although it will certainly raise geopolitical tensions, observers said yesterday.

They noted that the UN action did not cross the stock market's “red lines” as it skipped the military option.

 

Lawmakers to target financial sector

Lawmakers will use this week's parliamentary inspection of the government to turn up the heat on the alleged mismanagement of state-run lenders and the controversy over the 2003 sale of Korea Exchange Bank and other financial issues, industry watchers said yesterday.

Lawmakers are also expected to focus on the negotiations for a free trade agreement with the United States, the Capital Market Consolidation Act and the realignment of the state-run banks, they said.

 

Business Standard, India (online edition)

Front page

 

Bankers bet on rate hike by RBI

The Reserve Bank of India may not take a cue from the US Federal Reserve's decision against a rate hike when it announces its mid-year review of monetary policy on 31 October. This was because growth impulses continued to be strong on the domestic front, said bankers.

Inflation soared past the 5% mark in September after the economy expanded at a faster than expected rate of 8.9% in April-June 2006. This has led to growing expectations that the RBI may hike its benchmark reverse repo rate for the fourth time this year.

 

Equity fund managers far ahead of indices

Indian equity fund managers have managed to beat the benchmark indices hands down, despite the stock markets going through tumultuous times over the past decade and a half.

The first-ever ranking of fund managers, based on performance throughout their career, reveals that 90% of the fund managers had a 50 % rate of outperformance versus the benchmark Nifty index. In other words, of the 32 equity fund managers ranked, 29 bettered the Nifty at least half the time.

 

Companies & Industry

 

RIL seeks Dabhol LNG facility in lieu of gas sale

Reliance Industries (RIL), which had recently approached the Centre to sell gas to Ratnagiri Gas and Power's (RGPPL) Dabhol power plant, wants the exclusive use of the plant's under-construction LNG facility in return for the gas.

RIL has offered gas at $ 5 per million metric British thermal unit (MMBTU), according to sources in the Union power ministry. This is a couple of dollars less than the current spot price of gas.

 

Pvt container rail players' plans derail

Private operators wanting to run container trains will have to wait for at least three more years before their wish becomes a reality.

Indian Railways has issued licences to 14 players to operate container trains on key routes. Container Corporation of India (Concor), currently, is the only company operating container railway in the country.

 

Business Times, Singapore (online edition)

Front Page

 

Share deals at SGX down 30% in Q3

Equity capital market activity in Singapore took a dive in the third quarter compared to the frenzy of share offerings seen earlier this year, as fewer companies chose to list or sell new shares after the volatility that rocked the stock market in May and June.

Some $2.69bn worth of share deals - comprising initial public offerings (IPOs), new share issues and large, block sales of stocks listed on the Singapore Exchange (SGX) - were struck in the three months from July to September, down 30% from the record high of $3.87bn in the second quarter.

 

S'pore leads in jobs with regional roles, trails in pay

Singapore maintains the lead as a hub for Asia-Pacific and regional jobs despite growing competition from China, but it's falling behind in salary compensation as the war for talent hots up, according to a survey by Hong Kong-based HR Business Solutions.

Of the 3,556 managers that the human resource consultancy firm polled in July-August in Singapore, 21% cover the Asia-Pacific region in their jobs and another 25% hold regional positions for South-east Asia - a total of 46%, which is higher than in any of the other 15 countries surveyed in the region.

 

Business & Industry

 

Demand for retail hedge funds growing: Permal

(SINGAPORE) Regional demand for retail hedge funds may have been slow to take off, but that is set to change, according to hedge fund management firm Permal.

Indeed, its regional managing director Bo Kratz told BT in a recent interview that efforts to educate investors on fund of hedge funds, 'supported by the stable returns generated, will pay off reasonably soon'.

 

Caution sends IPO investors back to basics

(NEW YORK) Several companies in the past six weeks have bemoaned 'market conditions' and withdrew their initial public offerings (IPOs), suggesting that some investors remain cautious despite a rally in the US stock market.

Since the beginning of September, seven companies have yanked their offerings, including three on Thursday worth $717.3 m - raising the year's tally of delayed offerings to 51, according to Dealogic.

 

Bangkok Post, Thailand (online edition)

Front Page

 

Thaksin can return - after martial law
Former Thai prime minister Thaksin Shinawatra can come home, but he won't be welcome until martial law is lifted, the defence minister said today.
Gen Boonrawd Somtas said Sunday that ousted ex-premier Thaksin is welcome to return home “as a Thai citizen” but it “would be better” that he should wait until martial law, imposed following the 19 September coup, is lifted.

Thais back free health care, liquor curbs
Most people support the interim government's free medical health project, revised from the Thaksin government's Bt30 universal healthcare scheme, and are in favour of a plan to impose a ban on ads and public promotions of alcoholic beverages, according to an opinion poll.
Noppadol Kannikar, director of the ABAC Poll, said the poll was conducted among 2,538 people over age 18 in Bangkok and four other provinces: Chiang Mai, Khon Kaen, Chon Buri and Songkhla during 13-14 October.

 

Business & Industry

 

Storm building over state bank

State-owned Krung Thai Bank, the country's second-largest lender, is under a growing regulatory cloud after two senior executives were singled out for possible wrongdoing.

The bank board recently forced Sathit Chuwatthanakun, a senior executive vice-president, to accept a retirement package and leave the bank one year before his term expired. Another senior executive vice-president, Somanat Chutima, was ordered suspended from duty pending an investigation.

 

Showing some metal

'Today, the weather is terrible,'' mutters former steel tycoon Sawasdi Horrungruang after saying hello. ''It makes me so blue.''

One can forgive Mr Sawasdi for sounding glum. Nearly a decade ago the Asian financial crisis brought his once-booming steel empire to its knees, and he's still saddled with nearly Baht20bn ($534m) in debt.

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