Asia Investment Views 29 Sept

US closed higher despite early weakness after home prices and consumer confidence reports. Overall it seems as if the market sentiments were very positive. On the other side of the Atlantic, European markets were mixed. Ireland’s bail out of Anglo Irish Bank was the focus.

Euro was trading sharply lower at some point in yesterday trading, but recover later. now Euro is little change.

Asia market is likely to follow the US market today. Nikkei is currently +0.57%, while the pre-market trading is underway in Hong Kong. Shanghai is slightly in green now, +0.25%. The SHSE is among the worst performing indices this year, and as we explained earlier, this is no good sign.

Skimming through local Chinese newspaper, your author sees report that China will continue to implement policies to curb home prices. It is said that the government will continue to restrict mortgage lending on second and third homes, and to carry out pilot programme of property tax. As our readers would notice, your author is on a bearish side.

Other News:

AIG ready to discuss Treasury exit plan
AIG’s board is set to finalise a restructuring plan on Wednesday that would increase the US Treasury’s stake in the insurer to about 90 per cent as a step toward an eventual government exit. Source: Financial Times

N Korea propaganda gears up for Kim
Teachers in North Korea had already been telling their pupils that a brilliant young general was waiting in the wings to succeed Kim Jong-il, the country’s dictator. But few people inside the hermit kingdom actually knew anything about Kim Jong-eun, the third son of the ailing dictator who was unveiled on Tuesday as the heir apparent. Source: Financial Times

Japan reacts over rare earths ban
China’s de facto ban on rare-earth exports to Japan imposed during the two countries’ diplomatic feud will propel Tokyo to seek new sources of the strategic minerals, according to Japan’s new economics and fiscal policy minister. Source: Financial Times

Japan’s Tankan Sentiment Index Climbs Least in Six Quarters
Confidence among large Japanese manufacturers rose the least since early 2009 in September, and companies forecast that pessimists will outnumber optimists by year-end, as a rising yen threatens the nation’s recovery. Source: Bloomberg

Jailed Billionaire Huang Loses Boardroom Battle for China’s Gome
Jailed billionaire Huang Guangyu, fighting for control of the electronics retailer he founded, failed to win investor support for his proposals to oust its chairman and install his sister and lawyer as directors. Source: Bloomberg

U.S. Dollar Is `One Step Nearer’ to Crisis as Debt Level Climbs, Yu Says
The U.S. dollar is “one step nearer” to a crisis as debt levels in the world’s largest economy increase, said Yu Yongding, a former adviser to China’s central bank. Source: Bloomberg

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About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.