Wednesday 1 July 2009

UPDATE: German Min:No Credit Squeeze Now, Calls On Bks Duty

UPDATE: German Min:No Credit Squeeze Now, Calls On Bks Duty
   (Adds comments)


BERLIN -(Dow Jones)- There is currently no credit squeeze in Germany but difficulties might arise in the second half of this year, German Finance Minister Peer Steinbrueck said Wednesday.

Speaking to reporters on the sidelines of a DGB trade union umbrella group conference, Steinbrueck said he sees it as the banks' "duty to ensure that we don't get at all close to a credit squeeze."

He said there is the threat of credit difficulties in the second half of the year and is critical of the trend where banks use additional provided liquidity to expand mainly their trading activities.

Recent data showed that the European Central Bank's huge liquidity injections so far have failed to encourage banks to lend more to households and companies in the euro zone. ECB data suggest that banks have been hoarding much of the liquidity they were given.

Steinbrueck also said governments now must ensure they implement rules that will prevent a repetition of the financial crisis.

He warned against what he called "suspicious" reactions, particularly from the U.K. where the City of London has great political influence.

"They have in mind a restoration, a pure restoration, to restore old conditions as much as possible," he said, sharply criticizing financial market participants in London. "It's noticeable that they are trying to maintain their arbitrage advantages. Wall Street and the City of London won't lose their status suddenly, but their relative position will change."


Web site: www.bundesfinanzministerium.de


-By Andrea Thomas, Dow Jones Newswires; +49-(0)30-2888-4126; andrea.thomas@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 08:15 ET (12:15 GMT)


Copyright 2009 Dow Jones & Company, Inc.

UK's Brown: Wrong To Have Spending Review Now

UK's Brown: Wrong To Have Spending Review Now

LONDON -(Dow Jones)- U.K. Prime Minister Gordon Brown said it would be "completely" wrong to go ahead with a spending review at this stage.

Brown's comments were made during the weekly question and answer session in parliament.

His comments echo similar remarks from Chancellor of the Exchequer Alistair Darling and Business Secretary Peter Mandelson in recent days.

The two main political parties have been trading blows in recent days over future spending plans, with the opposition Conservative party accusing Brown's Labour party of deceit over spending plans.

They have said the government's decision not to go ahead with a planned spending review for the 2011-14 period is designed to avoid admitting a future Labour government would have to cut public spending.

An election must be held by mid-2010.

Brown again said that day-to-day current spending "will rise and continue to rise."

He said Conservative calls for constraining spending as soon as this year would result in thousands being left jobless.

Conservative leader David Cameron said Brown wasn't "being straight with the British public."

-By Laurence Norman, Dow Jones Newswires; 44-207-842-9270; laurence.norman@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 08:06 ET (12:06 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Dow Jones

Russia's Oil Wealth Funds Down To RUB5.771 Trillion July 1

Russia's Oil Wealth Funds Down To RUB5.771 Trillion July 1

.

MOSCOW (Dow Jones)--Russia's two oil-wealth funds fell to 5.771 trillion rubles ($185.04 billion) in June from RUB5.911 trillion a month earlier, the Finance Ministry said Wednesday.

Assets in Russia's Reserve Fund were RUB2.958 trillion as of July 1, while the National Welfare Fund was RUB2.814 trillion.

Russia officially split its Stabilization Fund into two separate entities Feb. 1.

The Reserve Fund accumulates oil and gas windfall revenue and its assets might be used to finance budget shortfalls or to repay debt, if necessary. The National Welfare Fund supports the country's pension system.

The Reserve Fund can't exceed 10% of the country's gross domestic product, with anything above that limit transferred to the National Welfare Fund.

Ministry Web site: www.minfin.ru

-By Lidia Kelly, Dow Jones Newswires; +7 495 937 8445; lidia.kelly@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 08:00 ET (12:00 GMT)


Copyright 2009 Dow Jones & Company, Inc.

UPDATE:Asian Shares End Mixed;Shanghai Stocks Soar 1.7% On PMI

UPDATE:Asian Shares End Mixed;Shanghai Stocks Soar 1.7% On PMI

(updates with India closing prices.)

By V. Phani Kumar, Colin Ng and Philip Vahn

SINGAPORE (Dow Jones)--Asian stock markets finished mixed on Wednesday, with Chinese stocks ending at their highest level in more than a year after data showed an improvement in manufacturing activity.

Japanese shares ended slightly lower after a turbulent session as investors considered a slightly weaker-than-expected result from the Bank of Japan's tankan survey, while Australian stocks declined, tracking an overnight fall on Wall Street.

"The lack of buying today was very evident," said Stuart Smith, a private client adviser at Bell Potter Securities. "It was just a crescendo leading up to the 30th of June. On the first of July (the start of a new financial year in Australia), the market let out a breath."

Japan's Nikkei 225 Average ended 0.2% lower at 9939.93. For the second straight session, the benchmark crossed the 10,000-point milestone intraday, but couldn't stay above the level.

Hong Kong stock markets were closed for a holiday.

Australia's S&P/ASX 200 fell 2.1%, South Korea's Kospi advanced 1.6% and Taiwan's Taiex jumped 2.3%, a day after the Taiwanese government lifted a ban on Chinese investment in 100 sectors.

India's Sensex rose 1.1% and Singapore's Straits Times climbed 0.8%, while New Zealand's NZX 50 ended down 0.6%.

Earlier in the day, the Bank of Japan's June tankan survey came in weaker than expected, with the headline diffusion index at minus 48, compared with a minus 43 result expected and a record low of minus 58 posted in March.

Macquarie Research's economist Richard Jerram said the weaker-than-expected result was not a cause for great concern as forecasts for next quarter's survey predict continued improvement.

"The tankan is clearly lagging a long way behind a whole lot of other surveys (that) have been improving over the past five months. That's the most striking feature," he said. "But when the cycle is swinging from such extreme weakness to a firmer position, you're always going to have a lot of numbers showing different trajectories."

China's Shanghai Composite ended up 1.7% at 3008.15, its highest finish since June 2008, after official data showed the mainland's purchasing managers' index rose to 53.2 in June from 53.1 in May. A PMI reading above 50 indicates growth.

Merrill Lynch economists Ting Lu and T.J. Bond wrote in a report that although the increase was lower than their expectations, it delivered a "positive message about the ongoing recovery in China. The rising PMI will support China-related asset prices, especially commodity prices."

Dow Jones Industrial Average futures were recently quoted 30 points higher in screen trade.

In Tokyo trading, All Nippon Airways tumbled 5.9% and financial services major Orix Corp. lost 4.8% on equity dilution concerns after The Nikkei reported that the two companies were considering raising capital through share sales.

Real-estate shares were higher, supported by growing expectations that office vacancies may top out in the coming fall-to-winter period, while office rents may bottom out early next year. Mitsui Fudosan ended 0.7% higher, while Mitsubishi Estate rose 0.3%.

Cyclicals were underperforming after weakness in metals prices Tuesday, with BHP Billiton down 2.4% and Rio Tinto down 1.2% in Sydney and Inpex losing 2.7% in Tokyo.

Property shares were boosted in Taipei after the government lifted its ban on Chinese investments, with Cathay Real Estate Development gaining 4.9% and Farglory Land Development climbing 5.5%.

In Seoul, the Kospi was aided by news South Korea's June trade surplus hit a record $7.44 billion, better than the $4.76 billion surplus expected.

Samsung Electronics rose 1.9%, though Hyundai Motor was off 1.2% following weak U.S. consumer sentiment data released overnight. Posco climbed 1.8% after the steel major agreed to pay A$7.8 million for a 16.7% stake in Australia's Jupiter Mines.

Malaysia's main index rose 0.4% and Philippine shares slipped 0.2%, while Indonesia's share index advanced 1.6%.

The dollar was higher against the yen, at A596.91 compared with A596.34 in late New York trade, extending its recent rally. The euro was at $1.4067 compared with $1.4025 and at A5136.30 from A5135.13.

South Korea's won gained on news of a record high June trade surplus. The dollar was lower at KRW1,271.9 from Tuesday's close of KRW1,273.9.

Spot gold was at $931 a troy ounce, up $4.40 from New York levels. August Nymex crude futures were recently at $71.18 a barrel, up $1.29 on Globex.

-Dow Jones Newswires; +65-6415-4140; markettalk@dowjones.com

TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkbackAsia@dowjones.com. Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 07:44 ET (11:44 GMT)


Copyright 2009 Dow Jones & Company, Inc.

2nd UPDATE:Irish Jobless Jun Live Register +2.8%/Mo To 413,500

2nd UPDATE:Irish Jobless Jun Live Register +2.8%/Mo To 413,500

(Adds PM's comment on official unemployment)

DUBLIN (Dow Jones)--Irish unemployment grew at a slightly slower pace in June, to a total of 413,500, as the live register for benefit payments rose again, bringing unemployment in the country to 11.9% in June up from a revised 11.6% in May and 5.9% in June 2008.

With the rapid slowdown in the construction industry, the number of people signing on to the live register on an unadjusted basis rose 2.8% on the month to 413,500 in June after rising 3.5% in May, the central statistics office said.

The live register includes part-time workers and casual workers entitled to unemployment assistance or benefits, like some teachers who take the summer off. Official unemployment is measured by the Quarterly National Household Survey.

Prime Minister Brian Cowen told the Irish Parliament that the rate of unemployment growth has eased somewhat, but warned that the official rate of unemployment will rise to over 15% by the end of this year up from 10.2% for the first quarter of 2009, and will likely rise again next year.

Most economists see it hitting 17% by the end of 2010.

Unemployment on the live register amongst immigrants from Eastern Europe is now at 20%, double the rate for Irish nationals, and for every Eastern European worker who has joined the dole queue over the last 12 months, almost two have emigrated.

"It's encouraging to note that the pace of decline in the live register has moderated in each of the last six months from a high of over 33,000 in January," said Chief Economist Brian Devine of NCB Stockbrokers.

"Once again this is further evidence that the worst of the declines are behind us but that with such a sharp rise in unemployment and taxes the recovery in Ireland is going to lag someway behind the global recovery," he added.

-By Quentin Fottrell, Dow Jones Newswires; +353-1-676-2189; quentin.fottrell@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 07:40 ET (11:40 GMT)


Copyright 2009 Dow Jones & Company, Inc.

US MBA Mortgage Survey Table Of Unadjusted Data

US MBA Mortgage Survey Table Of Unadjusted Data

Unadjusted data for week ending 6/26/2009

Composite Index Current Prev Week % Change 4 Wks Ago Year Ago
Market 468.1 574.4 -18.5 555.8 505.5
Purchase 293.9 309.5 -5.0 245.2 374.3
Refi 1482.2 2116.3 -30.0 2362.9 1269.2
Fixed-Rate 469.9 577.5 -18.6 565.2 490.1
ARM 436.7 518.6 -15.8 365.8 833.8

Conventional Market Current Prev Week % Change 4 Wks Ago Year Ago
Total 517.8 552.8 -6.3 611.7 587.4
Purchase 318.4 318.6 -0.1 253.8 458.5
Refi 1328.1 1504.6 -11.7 2066.4 1111.3
Fixed-Rate 516.0 548.3 -5.9 615.8 561.9
ARM 555.1 644.1 -13.8 528.5 1111.3

Government Market Current Prev Week % Change 4 Wks Ago Year Ago
Total 385.3 610.6 -36.9 462.5 368.9
Purchase 258.3 295.9 -12.7 232.4 253.6
Refi 2321.9 5411.5 -57.1 3972.8 2126.6
Fixed-Rate 392.7 625.3 -37.2 480.4 370.2
ARM 229.5 298.9 -23.2 80.1 346.9



(MORE TO FOLLOW) Dow Jones Newswires

July 01, 2009 07:00 ET (11:00 GMT)


Copyright 2009 Dow Jones & Company, Inc.

US MBA Mortgage Survey Table Of Seasonally Adjusted Data

US MBA Mortgage Survey Table Of Seasonally Adjusted Data

Seasonally Adjusted data for week ending 6/26/2009

Composite Index Current Prev Week % Change 4 Wks Ago Year Ago
Market 444.8 548.2 -18.9 658.7 477.7
Purchase 267.7 280.3 -4.5 267.7 342.8
Refi 1482.2 2116.3 -30.0 2953.6 1269.2
Fixed-Rate 446.5 551.1 -19.0 669.9 463.2
ARM 415.0 494.9 -16.1 433.6 788.0

Conventional Market Current Prev Week % Change 4 Wks Ago Year Ago
Market 493.9 527.3 -6.3 729.4 555.4
Purchase 290.1 288.5 0.6 277.1 419.9
Refi 1328.1 1504.6 -11.7 2583.0 1111.3
Fixed-Rate 492.2 523.1 -5.9 734.2 531.3
ARM 529.5 614.5 -13.8 630.1 1050.8

Government Market Current Prev Week % Change 4 Wks Ago Year Ago
Market 363.0 582.9 -37.7 541.1 348.2
Purchase 235.3 267.9 -12.2 253.7 232.2
Refi 2321.9 5411.5 -57.1 4966.0 2126.6
Fixed-Rate 370.0 597.0 -38.0 562.0 349.4
ARM 216.2 285.3 -24.2 93.7 327.5



(MORE TO FOLLOW) Dow Jones Newswires

July 01, 2009 07:00 ET (11:00 GMT)


Copyright 2009 Dow Jones & Company, Inc.

US MBA Mortgage Survey Snapshot

US MBA Mortgage Survey Snapshot
WASHINGTON (Dow Jones)--Following is data from the Mortgage Bankers
Association of America's weekly mortgage application survey,
released Wednesday.

Seasonally Unadjusted Seasonally Adjusted
Week : Market Purchase Refi Market Purchase Refi
Ending : Index Index Index Index Index Index
06/26/09 468.1 293.9 1482.2 444.8 267.7 1482.2
06/19/09 574.4 309.5 2116.3 548.2 280.3 2116.3
06/12/09 541.7 291.4 1998.1 514.4 261.2 1998.1
06/05/09 643.0 305.7 2605.7 611.0 270.7 2605.7
05/29/09 555.8 245.2 2362.9 658.7 267.7 2953.6
05/22/09 823.8 296.8 3890.4 786.0 256.6 3890.4
05/15/09 955.2 295.4 4794.4 915.9 254.0 4794.4
05/08/09 936.5 308.8 4588.6 895.6 265.7 4588.6
05/01/09 1018.8 305.5 5169.3 979.7 264.3 5169.3
04/24/09 995.4 288.5 5108.2 960.6 251.6 5108.2
04/17/09 1204.5 287.3 6540.7 1172.2 253.0 6540.7
04/10/09 1144.2 297.4 6071.7 1113.2 264.1 6071.7
04/03/09 1283.5 333.0 6813.5 1250.6 297.7 6813.5
03/27/09 1223.3 299.2 6600.1 1194.4 268.0 6600.1



(MORE TO FOLLOW) Dow Jones Newswires

July 01, 2009 07:00 ET (11:00 GMT)


Copyright 2009 Dow Jones & Company, Inc.

UPDATE: UK Jun PMI Signals Economy Recovering From Dire 1Q

UPDATE: UK Jun PMI Signals Economy Recovering From Dire 1Q

(Rewrites, adding details, analyst quotes, background.)

LONDON (Dow Jones)--The U.K.'s economy is showing signs that it is recovering after the sharp gross domestic product slump reported for the first quarter of 2009.

Data reported Wednesday show that the purchasing managers' index for the manufacturing sector rose to a 13-month high of 47.0 in June, from 45.4 in May, Markit Economics and the Chartered Institute of Purchasing and Supply said.

That outcome was stronger than expected, with economists surveyed by Dow Jones Newswires last week having estimated that the figure would rise to 46.5.

A reading above 50.0 indicates the sector is expanding, while a reading below 50.0 indicates it is contracting.

The Office for National Statistics also said Wednesday that the U.K. services sector posted its best performance since October last year, falling just 0.1% on the month in April.

"The U.K. manufacturing sector's purchasing managers' index has further boosted hopes that the U.K. will soon exit technical recession," said James Knightley, U.K. economist for ING Economics.

"The official monthly service sector output number also shows the smallest monthly fall since October last year. Add in the likelihood of increases in both the construction and service sector PMIs on Thursday and Friday it looks as though we could see positive GDP in the third quarter of this year," Knightley said.

The PMI survey has reported that, while the sector has been contracting for 15 straight months, the level of the decline has been easing since the beginning of the year.

The survey shows that manufacturing output in the second quarter was substantially above the level reported in the first three months of the year and is in line with other surveys and indexes, suggesting the U.K.'s economic recession hit the bottom in the first quarter.

The details of the PMI survey also show that the production sub-sector rose to 52.1 in June, the first rise above the key 50 level since May 2008. The rise was broad based with gains reported in output of capital goods, consumer and intermediate goods, Markit Economics said.

"June PMI data pointed to the first increase in U.K. manufacturing production for fifteen months," said Rob Dobson, senior economist at Markit Economics. "The most pleasing aspect of the recovery is that it was broad based," he said.

While production increased, the declines in new orders and employment eased further in June. For new orders, Markit Economics said the drop "was only modest" while the fall in the employment sub-index was the smallest since August last year.

The ONS services index, meanwhile, reported that the steepest decline came from the transport, storage and communication sector, which fell 1.2% in April from May. Distribution services, however, rose 1% over the same period.

While there is some optimism over the state of the U.K. economy, economists added a note of caution.

The increase in output likely partially reflects the large levels of de-stocking reported since the beginning of the year as new orders only improved marginally, said Jonathan Loynes, chief European economist for Capital Economics.

"Nonetheless, along with the modest improvement in the services index, the figures support the view that the economy contracted by much less in the second quarter than the 2.4% drop seen in the first quarter. But that's not an enormous comfort - a return to strong and sustained growth remains a long way off," Loynes said.

-By Ilona Billington and Laurence Norman, Dow Jones Newswires; 44 20 7842 9452; ilona.billington@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 05:36 ET (09:36 GMT)


Copyright 2009 Dow Jones & Company, Inc.

2nd UPDATE: German May Retail Sales Up 0.4% From April

2nd UPDATE: German May Retail Sales Up 0.4% From April

(Adds German retail association HDE 2009 sales forecasts)


By Nina Koeppen
Of DOW JONES NEWSWIRES


FRANKFURT (Dow Jones)--German retail sales edged up for the third consecutive month in May, but only very slightly, with rising unemployment dampening the scope for further improvements.

Retail sales rose a real 0.4% in May from April, above economists' forecasts for flat turnover, data from the Federal Statistics office showed Wednesday.

German retail sales fell a real 2.9% from a year ago, as May 2009 had one working day less than the same month in 2008, the statistics office said.

The outlook for the sector, which as been struggling for several years, remains mixed at best, economists said.

Low inflation rates, promotional offers and the government's economic stimulus plans have put a floor under retail sales, economists said.

And the implementation by many German companies of short-time work schemes has helped to cushion the impact of the severe recession on the labor market.

"However, with the expected strong deterioration on the labor market in the coming quarters, the moderate positive dynamic of private spending should come under increasing pressure later this year," cautioned Alexander Koch, an economist at UniCredit in Munich.

Separately, German retail association HDE Wednesday cut its 2009 sales forecast, saying it now expects nominal retail sales to fall 2%. The group previously said they would be flat or fall 1%.

HDE also said that retail sales have so far been below expectations.

Food, drinks and tobacco sales were down a real 2.4% from May 2008, while nonfood sales fell 3.0% over that period, the statistics office said.

The data are based on figures from seven German states that account for about 76% of total sales. They don't include car sales that were boosted by the German government's scrapping incentives.

Web site: www.destatis.de

-By Nina Koeppen, Dow Jones Newswires; 49 69 29725-509; nina.koeppen@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 05:27 ET (09:27 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Spanish June Car Registrations -16% On Year Vs -39% In May

Spanish June Car Registrations -16% On Year Vs -39% In May

MADRID (Dow Jonse)--The rapid decline in Spanish car registrations of recent months eased in June because of new government aid for car purchases, Spanish car manufacturers' association Anfac said Wedensday.

Car registrations - an indicator of car sales - fell 16% on the year in June after falling by an annual 39% in May and by 46% on year in April, Anfac said in a statement.

New car registrations by individuals and companies fell by 7.4% on the year in June, while purchases by rental car agencies fell by 42% in June.

The government subsidies boosted individuals' car registrations by 15% on the month in June, Anfac said. It was the first month in more than two and a half years where registrations by individuals grew compared to the previous month.

Spain is offering a EUR2,000 subsidy to new car buyers. The subsidy is funded by EUR500 from the central government, EUR500 from regional governments and EUR1,000 from the manufacturers.

Anfac Web site: www.anfac.es

-By Madrid Bureau, Dow Jones Newswires; +34 91 395 8120; djmadrid@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 05:22 ET (09:22 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Asian Shares End Mixed; Shanghai Stocks Soar 1.7% On PMI

Asian Shares End Mixed; Shanghai Stocks Soar 1.7% On PMI

SINGAPORE (Dow Jones)--Asian stock markets finished mixed on Wednesday, with Chinese stocks ending at their highest level in more than a year after data showed an improvement in manufacturing activity.

Japanese shares ended slightly lower after a turbulent session as investors considered a slightly weaker-than-expected result from the Bank of Japan's tankan survey, while Australian stocks declined, tracking an overnight fall on Wall Street.

"The lack of buying today was very evident," said Stuart Smith, a private client adviser at Bell Potter Securities in Australia. "It was just a crescendo leading up to the 30th of June. On the first of July (the start of a new financial year in Australia), the market let out a breath."

Japan's Nikkei 225 Average ended 0.2% lower at 9939.93. For the second straight session, the benchmark crossed the 10,000-point milestone intraday, but couldn't stay above it.

Hong Kong stock markets were closed for a holiday.

Australia's S&P/ASX 200 fell 2.1%, South Korea's Kospi advanced 1.6% and Taiwan's Taiex jumped 2.3%, a day after the Taiwanese government lifted a bank on Chinese investment in 100 sectors.

India's Sensex rose 1.2% and Singapore's Straits Times climbed 0.8% in afternoon trading, while New Zealand's NZX 50 ended down 0.6%.

Earlier in the day, the Bank of Japan's June tankan survey came in weaker than expected, with the headline diffusion index at minus 48, compared with a minus 43 result expected and a record low of minus 58 posted in March.

Macquarie Research's economist Richard Jerram said the weaker-than-expected result was not a cause for great concern as forecasts for next quarter's survey predict continued improvement.

"The tankan is clearly lagging a long way behind a whole lot of other surveys (that) have been improving over the past five months. That's the most striking feature," he said. "But when the cycle is swinging from such extreme weakness to a firmer position, you're always going to have a lot of numbers showing different trajectories."

China's Shanghai Composite ended up 1.7% at 3008.15, its highest finish since June 2008, after official data showed the mainland's purchasing managers' index rose to 53.2 in June from 53.1 in May. A PMI reading above 50 indicates growth.

Merrill Lynch economists Ting Lu and T.J. Bond wrote in a report that although the increase was lower than their expectations, it delivered a "positive message about the ongoing recovery in China. The rising PMI will support China-related asset prices, especially commodity prices."

Dow Jones Industrial Average futures were recently quoted 30 points higher in screen trade.

In Tokyo trading, All Nippon Airways tumbled 5.9% and financial services major Orix Corp. lost 4.8% on equity dilution concerns after The Nikkei reported that the two companies were considering raising capital through share sales.

Real estate shares were higher, supported by growing expectations that office vacancies may top out in the coming fall-to-winter period, while office rents may bottom out early next year. Mitsui Fudosan ended 0.7% higher, while Mitsubishi Estate Co. rose 0.3%.

Cyclicals were underperforming after weakness in metals prices Tuesday, with BHP Billiton down 2.4% and Rio Tinto down 1.2% in Sydney, Inpex Corp. losing 2.7% in Tokyo and Oil & Natural Gas Corp. losing 1.1% in Mumbai afternoon trading.

Property shares were boosted in Taipei after the government lifted its ban on Chinese investments, with Cathay Real Estate Development Co. gaining 4.9% and Farglory Land Development climbing 5.5%.

In Seoul, the Kospi was aided by news South Korea's June trade surplus hit a record $7.44 billion, better than the $4.76 billion surplus expected.

Samsung Electronics rose 1.9%, though Hyundai Motor Co. was off 1.2% following weak U.S. consumer sentiment data released overnight. Posco climbed 1.8% after the steel major agreed to pay A$7.8 million for a 16.7% stake in Australia's Jupiter Mines.

Malaysia's main index was 0.4% lower and Philippine shares slipped 0.2%, while Indonesia's share index advanced 1.6%.

The dollar was higher against the yen, at Y96.72 compared with Y96.34 in late New York trade, extending its recent rally. The euro was at $1.4065 compared with $1.4025 and at Y136.07 from Y135.13.

South Korea's won gained on news of a record high June trade surplus. The dollar was lower at KRW1,267.4 from Tuesday's close of KRW1,273.9.

Spot gold was at $931 a troy ounce, up $4.40 from New York levels. August Nymex crude futures were recently at $71.18 a barrel, up $1.29 on Globex.

-Dow Jones Newswires; +65-6415-4140; markettalk@dowjones.com

TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkbackAsia@dowjones.com. Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 05:17 ET (09:17 GMT)


Copyright 2009 Dow Jones & Company, Inc.

UPDATE: Euro-Zone Manufacturing Decline Slows Further In June

UPDATE: Euro-Zone Manufacturing Decline Slows Further In June

(Adds detail, chief economist comment)

   By Nicholas Winning
Of DOW JONES NEWSWIRES


LONDON (Dow Jones)--The contraction in euro-zone manufacturing output moderated for the fourth consecutive month in June, a fresh sign that the severe economic downturn in the currency block is gradually bottoming out, final data from Markit Economics showed Wednesday.

However, there were marked differences in the pace of recovery in the region's largest economies, with Germany and Italy still suffering sharp downturns in manufacturing, while France inched closer to stabilization.

The purchasing managers' index for manufacturing in the euro zone -a closely watched gauge of activity in the sector -recovered to a nine-month high of 42.6 in June from 40.7 in May, topping the preliminary June reading of 42.4, Markit said.

Although the result was stronger than the market consensus estimate of 42.4 from a Dow Jones Newswires survey of economists last week, it marked the 13th consecutive reading below the neutral 50.0 level and extended the longest period of recession in the sector in the survey's history.

Chris Williamson, the chief economist at Markit, noted that output and new orders were nearing stabilization in some countries, notably France and the Netherlands.

"However, the PMI remains lower even than levels sunk to in the aftermath of 9/11, reflecting below-par output trends in Germany, Spain and Italy," he said in a statement. "Pressures to cut employment also clearly remain intense across the region, as firms struggle in the face of falling demand," he added.

The data for the currency block's largest economies showed the French manufacturing PMI rose to an 11-month high of 45.9 from 43.3 in May, beating market forecasts for a rise to 45.5.

A reading below 50 indicates a contraction in activity while a reading above 50 reflects an expansion.

But in Germany, the manufacturing PMI remained depressed, inching up to an eight-month high of 40.9 in June from 39.6 the previous month and above economists forecasts of 40.5. Italy's PMI rose to a nine-month high of 42.7 from 41.1 in May - also beating market predictions of 42.4.

-By Nicholas Winning and Ilona Billington, Dow Jones Newswires; +44 207 842 9498; nick.winning@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

Currency Rates Of Coffee Producing, Consuming Countries

Currency Rates Of Coffee Producing, Consuming Countries

LONDON (Dow Jones)--U.S. dollar exchange rates as of 09:37 GMT July 1, compared with 10:36 GMT June 30.

Producers:

01/07/09 (30/06/09)

Angolan Kwanza AON 74.971 (74.971)
Bolivian Boliviano BOB 7.02 (7.02)
Brazil Real BRL 1.9525 (1.954)
Burundi Franc BIF 465.35 (465.35)
*CFA Franc XOF 2154.5 (2155.5)
Colombian Peso COP 517.935 (517.935)
Costa Rican Colon CRC 1 (1)
Cuban Peso CUP 36 (36)
Dominican Republic DOP 24950 (24950)
Ecuadorean Sucre ECS 8.748 (8.748)
El Salvador Colon SVC 8.1345 (8.1345)
Ethiopian Birr ETB 11.3715 (11.364225)
Guatemala Quetzal GTQ 8.1345 (8.1345)
Guinea Franc GNS 4924.745 (4923.865)
Haiti Gourde HTG 36.15 (36.15)
Honduras Lempira HNL 18.89 (18.89)
Indian Rupee INR 47.97 (47.97)
Indonesian Rupiah IDR 10205 (10215)
Kenyan Shilling KES 76.25 (76.75)
Malawi Kwacha MWK 140.05 (140.05)
Mexican Peso MXN 13.172 (13.1455)
Nicaragua Cordoba NIC 19.767 (19.7305)
Papua New Guinea Kina PGK 2.6199 (2.6261)
Peruvian New Sol PES 3.007735 (3.00399)
Philippines Peso PHP 48.095 (48.145)
Venezuelan Bolivar VEB 2147.5 (2147.5)
Vietnam Dong VND 17805 (17805)
Zambian Kwacha ZMK 5175.5 (5175.5)
Zimbabwe Dollar ZWD 426.5 (423.5)

CONSUMERS:


Danish Krone DKK 5.2904 (5.285)
#Euro EUR 1.4075 (1.4089)
Japanese Yen JPY 96.815 (95.515)
Norwegian Krone NOK 6.3945 (6.4235)
Swedish Krona SEK 7.6587 (7.6853)
Swiss Franc CHF 1.0832 (1.0821)

* = The CFA Franc is the common currency of 14 African countries which are
members of the Franc zone:
XOF = Benin, Burkina, Ivory Coast, Guinnea Bissau, Mali, Niger, Senegal
and Togo under the Central Bank of the West African States.
XAF = Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea
and Gabon, under the Bank of the Central African States.

# = Currencies that are quoted in U.S. dollars per unit of currency.
All other currencies are quoted in units of currency per U.S. dollar.

Source: OANDA Corp and yahoo.com.


-By Caroline Henshaw, Dow Jones Newswires; 4420-7842-9372; caroline.henshaw@dowjones.com

DATA SNAP: UK Jun Mfg PMI 47.0 Vs 45.4 In May

DATA SNAP: UK Jun Mfg PMI 47.0 Vs 45.4 In May

LONDON (Dow Jones)--The U.K.'s manufacturing sector rose sharply in June, closer to the key 50-point level, recording a thirteenth-month high, data showed Wednesday.

The purchasing managers' index for the manufacturing sector rose to 47.0 in June from 45.4 in May, Markit Economics and the Chartered Institute of Purchasing and Supply said.

That outcome was stronger than expected, with economists surveyed by Dow Jones Newswires last week having estimated the PMI rose to 46.5.

A reading above 50.0 indicates the sector is expanding, while a reading below 50.0 indicates it is contracting.

-By Ilona Billington, Dow Jones Newswires; 44 20 7842 9452; ilona.billington@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 04:37 ET (08:37 GMT)


Copyright 2009 Dow Jones & Company, Inc.

DATA SNAP:UK Services Output -0.1% Apr, Smallest Drop In 6 Mos

DATA SNAP:UK Services Output -0.1% Apr, Smallest Drop In 6 Mos

LONDON (Dow Jones)--Output in the U.K.'s dominant services sector fell 0.1% in April, the smallest decline in six months as the economy showed signs of stabilizing after a traumatic first quarter.

The Office for National Statistics said Wednesday that service sector output fell 0.1% on the month in April on a seasonally adjusted basis.

Service sector output fell 0.2% in March and declined 0.6% in the first two months of 2009. October was the last month services output did not decline.

In the three months to April, services output declined 1.2% versus a 1.6% drop in the three months to March.

The U.K. economy slumped 2.4% in the first quarter, the largest quarterly decline in more than fifty years. However a string of data in recent weeks has suggested the economy has since stabilized somewhat.

The ONS said the largest declines in services output came from transport, storage and communcation, which fell 1.2% in April. Distribution services increased 1.0%.

The ONS also reported that productivity fell 4.2% in the first quarter from a year earlier, the largest annual decline since records began in 1960.

On a quarterly basis, output per worker fell 2.0% in the first quarter, the biggest drop since 1979 as economic activity fell faster than employment.

-By Laurence Norman, Dow Jones Newswires; 44-207-842-9270; laurence.norman@dowjones.com

(MORE TO FOLLOW) Dow Jones Newswires

July 01, 2009 04:30 ET (08:30 GMT)


Copyright 2009 Dow Jones & Company, Inc.

GLOBAL MARKETS: European Stocks Higher; Risk Appetite Grows

GLOBAL MARKETS: European Stocks Higher; Risk Appetite Grows


By Ishaq Siddiqi
Of DOW JONES NEWSWIRES


LONDON (Dow Jones)--European stocks pushed higher Wednesday, with risk appetite back on the rise as the new month and second half of the year kicks in. Investors will now look to upcoming key macroeconomic data for further signs of a recovery in the global economy.

"Risk appetite is up and European indexes need to hold above key support levels for sentiment to remain positive," said David Morrison, strategist at GFT. "Traders are looking ahead to Thursday's nonfarm payrolls for June and crucially, the U.S. earnings season which kicks off next week."

At 0800 GMT, the Dow Jones Stoxx 600 index was up 1.1% at 208.18, London's FTSE 100 index was up 1.3% at 4307.45, Frankfurt's DAX index was up 1.5% at 4884.02, and the CAC-40 index in Paris was up 1.7% at 3193.99.

The U.S. labor market will be under the spotlight, ahead of the payrolls, with the publication of the ADP employment survey for June at 1215 GMT.

"The recent stabilization (even if it is at a high level) of initial jobless claims suggests that the ADP employment change in June is likely to remain negative, but might be the lowest since October 2008," said Jerome Deneaux, analyst at Newedge Group.

The nonfarm payrolls data are due Thursday at 1230 GMT, a day early because of Friday's U.S. public holiday, and the ADP release offers a good 'heads-up' for traders, especially as they measure employment in the private sector.

Still, a poor consumer confidence number in U.S. Tuesday sent stocks lower on Wall Street. Despite closing off the session's lows, the Dow Jones Industrial Average fell 1.0% to 8447.0, having fallen as low as 8394.0 during the session. The S&P 500 stock index fell to 919.32.

Asian stock markets were mixed Wednesday, with some weighed by weakness on Wall Street and the discouraging U.S. data. Japan's Nikkei 225 closed down 0.2%, while Korea's Kospi gained 1.5%. Hong Kong's Hang Seng index was closed for a holiday.

The Tokyo stock market was barely moved by the Bank of Japan's quarterly tankan survey, which came in slightly weaker than expected with the headline diffusion index for large manufacturers at minus 48, compared with a minus 43 result expected.

Still, there was cause for hope as it was an improvement from the record low of minus 58 posted in the previous quarter, bolstering the view that the worst is over for the Japanese economy.

Elsewhere, the crude oil futures market pushed higher Wednesday, rebounding after losses Tuesday as a decline in U.S consumer confidence damped hopes for a quick economic recovery.

At 0815 GMT, the August crude contract on Globex stood at $70.87 per barrel, up 98 cents, having settled Tuesday at $69.89 per barrel, down $1.60, on the New York Mercantile Exchange.

At 0815 GMT, spot gold stood at $931.10/oz, around $5 higher than in late New York business Tuesday.

In the currency markets, the dollar regained some ground as the market turned cautious again. "It is becoming clear that risk appetite is starting to lack consistency and any catalyst could trigger a broad correction amid weak summer liquidity conditions," said Geoffrey Yu at UBS.

At 0815 GMT, the euro stood at $1.4070, having come close to breaching the $1.4000 level, while the dollar stood at Y96.81, having risen to a near two-week high of Y97.00 in Tokyo.

The safe-haven sovereign debt markets have edged lower Wednesday, as the equity markets have gained. However, trading has been subdued ahead of the latest debt issuance from Germany, which reopens EUR6.0 billion of its 3.5% 2019 bund, the 10-year benchmark.

At 0820 GMT, the September bund contract stood at 120.97, 0.11 lower.

-By Ishaq Siddiqi, Dow Jones Newswires; +44-20-7842-9488; ishaq.siddiqi@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 04:21 ET (08:21 GMT)


Copyright 2009 Dow Jones & Company, Inc.

DATA SNAP: Euro-Zone Manufacturing Contraction Slows In June

DATA SNAP: Euro-Zone Manufacturing Contraction Slows In June

By Nicholas Winning
Of DOW JONES NEWSWIRES


LONDON (Dow Jones)--The contraction in euro-zone manufacturing output moderated for the fourth consecutive month in June, although improvements in France were offset by ongoing weakness in Germany and Italy, final data from Markit Economics showed Wednesday.

The purchasing managers' index for the manufacturing sector recovered to a nine-month high of 42.6 in June from 40.7 in May, topping the preliminary June reading of 42.4, Markit said.

Although the result was stronger than the market consensus estimate of 42.4 from a Dow Jones Newswires survey of economists last week, it marked the 13th consecutive reading below the neutral 50.0 level and extended the longest period of recession in the sector in the survey's history.

-By Nicholas Winning and Ilona Billington, Dow Jones Newswires; +44 207 842 9498; nick.winning@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 04:20 ET (08:20 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Dow Jones

UPDATE: Hungary's June Mfg PMI 45.8, Exports Start To Rise

UPDATE: Hungary's June Mfg PMI 45.8, Exports Start To Rise

(Adds details, background.)


By Margit Feher
Of DOW JONES NEWSWIRES


BUDAPEST (Dow Jones)--The contraction in Hungary's manufacturing sector activity continued in June although at a slightly slowing pace from the all-time low in January as exports started to expand for the first time since September, data released Wednesday show.

The purchasing managers' index was a seasonally adjusted 45.8 in June, a slight uptick from 45.4 in May, the Hungarian Association of Logistics, Purchasing and Inventory Management, or MLBKT, said. The index started to contract in October and hit an all-time low of 38.5 in January.

The data confirm that Hungary is in a deep recession but the expansion of exports in June is a positive sign. The government projects that gross domestic product will contract this year by nearly 7% as the economy of Germany, Hungary's chief export market, is also facing a similar GDP decline.

The export component of the PMI jumped to 50.6 in June, from 45.7 in May, likely helping the manufacturing output indicator to contract less in June than in May. The manufacturing output indicator was at 45.0 versus 44.7.

The import indicator also improved although still showed a contraction. It rose to 43.5, the highest reading since October last year, from 41.3 in May.

Despite the slightly improving economic activity, the new orders indicator contracted further, to 45.1 from 45.4.

Following a six-month period of falling prices, purchasing prices ticked up in June, with the indicator signaling an expansion at 50.7 versus 49.3 in May.

Hungary's PMI index has never before contracted for nine consecutive months in the data's 15-year history, the MLBKT said. It only contracted for five months in a row once, between August and December 1998, it added.

Figures above 50 indicate expansion and below 50 a contraction.

Association Web site: www.mlbkt.hu

-By Margit Feher, Dow Jones Newswires; +361-267-0622; margit.feher@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=kO8CanuSLXtXGr9ppgBt7Q%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 01, 2009 04:10 ET (08:10 GMT)


Copyright 2009 Dow Jones & Company, Inc.